Menswear chain Moss Bros has reported a sharp drop in sales and warned tough trading conditions will leave annual profits short of expectations.

Moss Bros, which has a store in Market Place, Bolton said like-for-like sales were down 5.2 per cent for the past 18 weeks, compared with a 2.6 per cent fall in the first half of its financial year.

Shares fell by 12 per cent yesterday as the company said the challenging conditions in the retail sector were likely to have a “material adverse impact” on market expectations for its full-year profits.

Chief executive Philip Mountford, said the retailer would now focus on reducing costs in the business.