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Mosaic Brands braces for a loss, as sales fall short of expectations

(Source: Crossroads / Facebook)

Mosaic Brands has warned of a trading loss, telling shareholders that while sales improved in May – a key trading month including Mother’s Day – growth was below expectations. 

“Our core customers remained highly cautious of the ongoing risks associated with Omicron,” the fashion retailer said a statement issued by spokesman Chris Fogarty.

Given “the continued disruptions to trade during the period” Mosaic now expects to report a loss for the second half of the year resulting in a full-year loss for the group, which owns Millers, Crossroads, Noni B, Katies, Rivers and Ezibuy, among others. The company did not reveal figures. 

The loss may come as a surprise to investors given the company posted a profit over the first half despite four months of lockdowns during the period. 

And according to ABS data, retail sales surged nearly 10 per cent in April, with the apparel sector reporting a 14.7 per cent increase. Data for May is not yet available. 

Mosaic said online sales continued to grow strongly in May and as most government-imposed health orders across the nation have now been removed, in-store trading and sales momentum improved week on week throughout late May and into June.

“While inflationary and other wider economic pressures are expected to continue into FY23, the recent strengthening the group is seeing in trade gives the board confidence that conditions ahead are more favourable and navigable than the previous two years of managing the impact of Covid and lockdowns,” the statement said. 

“As a result, Mosaic expects to return to profitability in FY23. Management is focussed on closing FY22 and entering FY23 in a strong and clean position to maximise the year ahead.”

The company will release further information in late July. 

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