Moss Bros aims to expand beyond suits

Fashion house Burberry said it expected annual earnings to beat forecasts despite an easing of UK sales growth.

It said the weakness of the dollar had not helped UK trading, but pointed out that 90% of its sales were global.

Meanwhile, Moss Bros said a greater focus on casual wear had helped lift profits beyond expectations.

Suits you

The common thread between both retailers is that they have both changed their traditional images to appeal to a wider spectrum of consumers.

We are becoming a business which is not only a suit business but a menswear business Roddy Murray, Moss Bros financial director Check Moss Bros shares Check Burberry shares

Moss Bros reported a better-than-expected rise in pre-tax profits to �5.5m ($10.4m) for the year to 29 January, up from �1m the year before.

The rise was driven by strong sales in suits and formal shirts (up 12% and 17% respectively).

But significantly, casual wear, which accounts for 12.5% of total sales, registered a 35% sales increase over the year.

"We are becoming a business which is not only a suit business but a menswear business," said financial director Roddy Murray.

The group includes the Moss Bros, Cecil Gee and Hugo Boss brands.

Global fit

Meanwhile, Burberry is anticipating that earnings before interest, tax and amortisation (EBITA) will reach a minimum of �162m for the financial year just ended, beating forecasts of �160m.

Reinventing itself into a global fashion statement, Burberry has charmed shoppers around the world with its distinctive check design - now worn by royalty and football fans alike.

But UK sales have suffered as the weak dollar kept US tourists at bay. The company admitted that the trend among young soccer fans and others for donning Burberry-check clothing - the so-called 'chav' factor - "probably had not helped".

However, gains in Hong Kong and southeast Asia were described as robust.

In recent months, the group has focused on tighter controls of its supply chains, with back-room shake-ups to save money.

And back in November, the group announced it was returning �250m to shareholders.

"Burberry has continued to manage for the bottom line, delivering a solid result for the half," said chief executive rose Marie Bravo.

Burberry is two-thirds owned by retail conglomerate GUS.