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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