Moss Bros has warned that the effects of Covid-19 coronavirus will result in a “significant” reduction in revenue and profitability for the year ending 30 January 2021.
The group today said it has been monitoring its high street stores, factory outlets, online and hire business segments for signs of any financial impact arising from the pandemic.
In a trading update, the company said: “Whilst the initial impact was relatively benign, over the last week we have seen a significant reduction in footfall across our retail outlets and in orders in our hire business. As such, the group has taken the decision to temporarily close all its stores until further notice. The group recognises that Covid-19 could result in a sharper decline in trading performance if mass gatherings (such as Ascot) are voluntarily cancelled or prohibited.”
Moss Bros said it now expects the effects of the coronavirus will result in a significant reduction in revenue and profitability for the year ending 30 January 2021, however it said it is ”too early to determine the precise quantum” at this stage. Prior to 13 March, the group had been trading as expected.
The group said it is debt free and retains cash in the bank. It is managing the business to protect profitability and is taking all necessary action to reduce costs and conserve cash. With these actions, the group believes that it has the ability to withstand significant revenue decline through to the beginning of the second half of financial year 2021.