Moss Bros (LON:MOSB) reported a decline in profits over the course of 2017, after problems with stock shortages impacted on sales.

The group was expected to release results along these lines, after issuing a profit warning last week. The group saw a rise in revenue but it failed to have an effect due to an increased cost of sales, sending total pre-tax profit down 6.1 percent to £6.7 million. Retail like-for-like sales including e-commerce in the first eight weeks of the new financial year down 6.7 percent. as rising revenue was offset by an increased cost of sales.

However shares in the company moved up nearly 3 percent at market open, with the results coming in above expectations. Last week Moss Bros’ share price took a hit, plunging 25 percent as it cut its dividend and warned on the full year figures.

Chief executive Brian Brick commented: “Although this shows a slight improvement of the trend we reported in January, it is clear that the recovery we anticipated has been significantly hampered by the stock shortages.”

“We left ourselves with too little ‘running line’ stock to close out the year having bought cautiously for the second half of 2017. This has continued to hamper our performance into the start of the year.

“In spite of this issue, we have continued to progress the modernisation of the store portfolio, which is nearing completion and develop our omni-channel shopping proposition, including a better level of customer segmentation.”

Shares in Moss Bros are currently up 2.67 percent at 48.00 (0815GMT).