Cyber Weekend Drives Strong Sales for Mosaic Brands
Mosaic Brands has seen a return to profitability in its new trading update, released today.
The Group, which houses brands including Millers, Rivers, Autograph, Katies and Noni B, has reported an expected EBITDA increase of 22 percent to 38 percent ($40 million to $45 million) compared to the same period last year.
Its online sales have increased by 31 percent on the PCP and now represent 17 percent of total sales turnover.
Scott Evans, the CEO of Mosaic Group, said that despite the certain challenges facing the retail industry last year, it was ‘encouraging’ to see the uplift in month-on-month sales.
“As stated in 2020 we are seeing profound and permanent shifts in the retail sector,” explained Evans. “We have moved swiftly to embrace this by realigning our rental costs, store footprint and rapidly building our online offer.”
Mosaic Brands reported ‘record’ Black Friday sales, followed by a ‘solid’ Christmas trading period. The core strategy for Mosaic Group moving forward includes the continued focus on margin growth, instead of ‘chasing sales at any cost’.
“This delivered an improvement on the -18.8 percent comparative sales in quarter one to finishing the half and -15 percent,” Evans said.
The renewed concerns over COVID-19 outbreaks across the country created a shift in consumer behaviour, Evans explained, with shoppers avoiding shopping centres in the tail-end of the trading period.
“There was a notable shift late in the trading period as our specific market segment avoided shopping centres, due to renewed concerns regarding COVID-19,” he said. “Despite this, overall December comparative sales proved resilient at four percent down on the previous year.”
Mosaic Brands remains ‘well-positioned’ for the second half of FY21. These results are ‘better than expected’, with a strengthened balance sheet underpinned by cash holding at its ‘highest ever level’ and an overall improvement in its net asset position.
“With the Group also holding circa 50 percent less stock than it did 12 months ago, Mosaic is well-positioned for the second half,” Evans said.
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Perhaps a follow up story on Mosaic and how they are treating their staff. Unilaterally across all of their brands, staff working hours and store trading times are being cut, and despite the Retail award stating any changes to the number of hours worked having to be made with agreement of both parties, staff are being told if they do not accept the new changes, they are out of the company. How is this consultation?
I’m also sure that the management of many shopping centres are not going to be pleased with in many cases, several stores running completely different and shorter trading hours that what is normally required of them?
George
100% you are write I am hearing 60 to 75 of managers are walking out the door so
Going to be interesting to see his stores will trade at all .
Agree with you both. I’m well aware of what staff have received and the disgraceful manner in which they’ve been treated. Accept this deal or you are out. Wow let’s see how you run your 1400 stores when you’ve personally marched staff out the door with threats and intimidation. I’d like to know what the shopping centres think of all the shop front that will be closed due to no staff in the coming weeks. How does the union and office of fair trading not support these overworked belittled staffers. I was a very big spender in my local rockmans store but the clothes are now poorly made and designs are horrendous. The communication or lack of staff are receiving from the group is highly questionable. ACA would love to hear from staff I’ve no doubt.