Men's wear retailer and hire shop Moss Bros has warned that its new look stores and ranges will take longer than expected to produce profitable results.

The group, which is still in the red, does not expect to return to profit until the end of 2002. It made pre-tax losses of £3.9million for the first six months of the year compared with a previous £16.2million loss, while turnover fell from £71.6million to £68.6million.

Its restructuring efforts are being focused on three different  brands: Premium (which includes Cecil Gee and the franchised Hugo Boss and Canali stores); Code (which takes in the Savoy Taylors Guild, Suit Company and Blazer stores); and Moss (its mid to upper market classic division). It is also trialing a new women's wear range.

The disruption is estimated to have cost the group about £1 million. Chairman Keith Hamill, said: " The task we are undertaking is a substantial one and we are confident the current disruption will lead to longer-term benefits and increased shareholder value, once the business settles down. It was hoped that the programme of work could be achieved without significant losses. This will not be possible, partly due to the difficult retail climate."