Moss Bros' share price climbed more than two per cent today after the suit-maker reported a 20 per cent jump in profits.
Total group revenue grew 5.7 per cent to £127.9m for the year ending 28 January. Like-for-like sales increased 5.3 per cent, and online sales jumped 15.7 per cent. E-commerce sales now account for 11 per cent of Moss Bros' business.
Profit before tax jumped 20.3 per cent to £7.1m, up from £5.9m the year before. Moss Bros' share price was up 2.3 per cent at time of writing.
Why it's interesting
Moss Bros has been focussed on improving its margins and its online offering, as well as updating its store portfolio with refurbishments. To polish its margins, the suit-maker has been reducing promotions and investing in its own label range. Lower levels of discounting has enabled the company to improve margins by 1.5 per cent over the year.
What Moss Bros said
Brian Brick, chief executive of Moss Bros said: "We are very pleased with the performance of Moss Bros, as we made good progress towards the achievement of our strategic goals.
"The modernisation of the store portfolio is nearing completion and continues to achieve anticipated returns.
"We continue to add to the capabilities of the management team and we are well placed to accelerate out growth, in spite of continuing tough market conditions and the ongoing headwinds which we face as a result of increasing input costs in many areas."
What analysts said
Cantor Fitzgerald analyst Mark Photiades said: "The 2017 financial year has been another year of significant progress at Moss Bros...The current year has started positively with retail like-for-likes up by 4.3 per cent.
"The year ahead is going to be challenging given external macro headwinds but Moss Bros has a number of growth opportunities."