Shares in Moss Bros plunged 29 percent in early trading as the group swung into a loss in the first half of the year.
The group reported pre-tax losses of £1.7 million compared to the profit of £3.9 million a year earlier.
The retailer blamed the hot weather, supply chain issues and “the distraction of England’s success at the World Cup” for the drop in revenues.
“As the extended period of hot weather arrived, coupled with the distraction of England’s success at the World Cup, customer footfall reduced in Q2 on average by -7 percent year on year and in the worst affected stores by up to -14 percent,” said Moss Bros.
“Having assessed the quarter on quarter decline in footfall, we estimate that we were negatively impacted by around £2.7 million of retail store sales, which would have delivered c. £1.4 million of gross profit.”
Analysts at City broker Peel Hunt wrote in a note to clients: “Trading levels have improved over the first seven weeks of H2, especially online, although this is still not enough to catch up to forecasts.”
The broker has cut its full-year pre-tax profit forecast from £1.8 million to £0.5 million.
The group’s chief executive, Brian Brick, said that while current trading was “showing a steady and improving trend”, the group is still likely to deliver an operating profit that was “materially lower” than the current market expectation of £2.3 million.
Shares in Moss Bros (LON: MOSB) are currently trading down 15.89 percent at 39,11.
