Trans-Tasman apparel retailer Mosaic Brands says it had a tough run in its third quarter due to the ongoing Omicron outbreak and inflationary pressure in the retail environment.
In a trading update for the quarter ended March 27, the company recorded an operating cash outflow of $37.8 million. Online sales (excluding EziBuy) grew 40 per cent and is up 24 per cent year to date.
During the past quarter, the group had to close 40 stores per week due to staff absenteeism related to Covid.
Despite the volatile conditions, the company expects a stronger second half as customers resume in-store shopping.
Last year, the business agreed to purchase the remaining 49.9 per cent of EziBuy for $11 million and the company says this will enable a speeding up of the restructuring of the business.
EziBuy is one of the largest multi-channel retailers in Australia and New Zealand, generating approximately NZ$135 million of revenue, of which over 80 per cent is through its digital platform.
The group owns labels including Katies, Millers, Noni B, Rivers, Rockmans, Crossroads, Autograph, W.Lane, EziBuy and Beme.