Erica Berchtold Appointed Mosaic Brands CEO

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By Published On: February 29, 20240 Comments

Erica Berchtold has been named as the new CEO of Mosaic Brands with the company posting a very successful first half.

The former CEO of The Iconic and Managing Director of Rebel Sport will be succeeding Scott Evans as Mosaic Brands CEO.

Mosaic Brands Chairman Richard Facioni endorsed the appointment. “As we accelerate our big box and digital strategy, Erica not only has the right skillset to drive the future direction of the Group but also a strong understanding of our customers as a former General Manager of two of our brands. I look forward to working with Erica as she takes the Group forward.”

Erica Berchtold has long been involved in the fashion industry with over 20 years industry experience. She was appointed CEO of THE ICONIC in 2019, growing the business to over $700 million in net annual revenues. Previously, she was Managing Director of Super Retail Group’s Rebel sporting goods division, where under her leadership revenues grew to nearly $1 billion over seven years. Before that, she worked for Specialty Fashion Group as General Manager for Crossroads and Autograph, two women’s fashion apparel brands with more than 200 stores across Australia.

In April last year, she was appointed CEO of Best & Less but backed out before taking up the role.

“Mosaic is operating in an increasingly dynamic and growing market. Two thirds of all spending on clothing is now by Australian consumers aged 35 and older,” says Erica Berchtold. “Your average 50-year-old spends more on clothes each year than a 20-year-old. 

“The huge shift to online in recent years also provides an enormous amount of data and information about those consumers’ shifting expectations and choices which will drive our strategy and direction.

 “That’s why this is a really exciting opportunity and time to be leading a true omni-channel retailer. 

“Low price is also not the antithesis of style. I will be looking to amplify the pride in our brands and the people behind them, in providing affordable fashion for all.”

Departing CEO Scott Evans will be retiring after a decade with the business. “The Mosaic Brands I walked into over 10 years ago is radically different today in terms of its stores, digital offering and ever broadening customer base. The first turnaround was about growth and returning to profitability. The second Covid-related turnaround – survival then revival.

“Running retail in Australia is a great challenge and I am proud to say the Group is once again profitable and on a solid operational and financial foundation. I look forward to seeing Mosaic go from strength to strength under Erica’s leadership.”

The company posted its impressive first half results today alongside the announcement. The Group reported a first-half NPAT of $5.4 million, a 38 percent improvement over the pcp. This was after absorbing a negative impact of $4.3m due to an adverse currency movement against the USD, with an EBIT of circa $13.1m ($17.4m normalised for USD impact) against $13.7m pcp. As part of its balance sheet repair strategy the Group reduced inventory intake for the half by 33 percent ($41 million less than the pcp) with comparable in-store sales only down by 6.6 percent. 

“This result marks a key turning point for Mosaic Brands,” said departing CEO Scott Evans. “A pre-Covid track record of profitability has resumed as seen over the recent few years. The Group has delivered a $13.5m improvement over the last 6 months in its net current assets position and projects further balance sheet improvements for the second half of FY24 and into FY25.”

“As this is the last financial result I will present for the Group, I also wanted to acknowledge and thank only all of the Mosaic Brands team, past and present, for their hard work and commitment,” Mr Evans concluded. “There have been few easy decisions in the last few years, but the commitment of our team, from storefront to storeroom, has been incredible and I’ve been proud to lead them.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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