Men’s clothing retailer Moss Bros (LON:MOSB) saw its share price drop by a third on Wednesday morning, after cutting its dividend and warning on its full year figures.

The group said it now expected to deliver a profit figure ‘materially lower’ than market expectations, slashing its dividend to 1.97p per share, bringing the total dividend for the year to 4p instead of the 5.89p the previous year.

The company said it had been hit by a lack of stock availability, challenging hire sales and a more cautious consumer environment.

“The beginning of the year has been hampered by short-term stock delivery issues caused by the consolidation of our supplier base,’ chief executive Brian Brick said.

“The resulting stock shortage has undoubtedly driven a significant shortfall in sales, which will continue until late Spring. In common with many UK retailers, the year ahead looks like being a very challenging one and we have taken action early to be sure we protect the underlying strength of the business.’

“We do believe continued investment is essential to ensure we retain a sustainable point of differentiation and that we leverage our distinct position on the high street,” the company concluded.

Moss Bros shares are currently trading down 26.13 percent at 43.29 (0833GMT).