Mosaic Brands expects marginal loss amid trading challenges

(Source: Noni B/Facebook)

Noni B parent Mosaic Brands now anticipates marginal loss on operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the full year, after experiencing more trading challenges in the second half.

The fashion retailer said that its business in the second half has been impacted by disruptions when it migrated to a fully integrated logistical supply chain and distribution system with a newly appointed global partner.

The disruptions experienced were worse than expected, delaying delivery leading into the Mother’s Day trading period.

The company said that it has largely resolved the logistics issues and sees comparable sales improving throughout June.

Mosaic Brands now forecasts the first half of the next fiscal year to benefit from a 20 per cent increase in inventory intake at a 10 per cent lower price compared to the first half of this year.

The company also expects to benefit next year from the material annual cost savings brought by the new logistics partnership.

Mosaic Brands also owns Millers, Rockmans, Rivers, Katies, Autograph, W Lane, Crossroads and Beme.

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