It's the year of online sales for Mosaic Brands, which has reported a 'record' $119 million in digital sales - a 21 percent increase against pcp.
The retailer, which houses brands including EziBuy, Rivers, Autograph and Millers, reported a strong start to the FY, with digital sales delivering 40 percent of the Group’s revenue. Additionally, digital sales for EziBuy were up 10.6 percent on pcp.
Its total Group revenue is $298 million, up one percent growth on pcp.
Scott Evans, CEO of Mosaic Brands, said that despite the Omicron variant disrupting the trading season, the trend of consumers over 50 embracing digital channels is going strong.
“This latest result further highlights the global trend of the over-50’sconsumer embracing the online channel, with sales for the first half of FY2022 up 21 percent for Mosaic Brands, including a record Black Friday sales period,” he said. “This is further echoed as we move to completing the full ownership and turnaround of EziBuy, with its online sales also up 10.6 percent for the period.”
The CEO expressed that Mosaic plans to expand its online third-party SKUs to enhance its digital sales further. Furthermore, the retail will continue to invest in its ‘digital talent’, and remain ‘on track’ to reach its goal of eight million SKUs by mid-2025.
The Omicron variant caused serious disruption for the retailer, losing just under 50,000 store trading hours due to restrictions and independent store closures. “That was more than double the trading days lost for the same period a year ago,” Evans said.
Despite these difficult times – and the variant is severely impacting centre traffic – the Group believes it is ‘well-positioned and prepared’ to weather the wave.
“It’s particularly pleasing given that, notwithstanding the immense challenges we faced, Mosaic’s comparable store sales rebounded throughout the key November and December Christmas period as the lockdowns ended and finished the half at +1 percent, resulting in the Group now delivering two successive halves of comparable growth,” said Evans.
The Group is forecasting its EBITDA to be in the order of $8 million, which is roughly 16 percent above the broker estimates, and a further increase of $9 million on pcp (excluding JobKeeper benefits).
At the time of writing, its shares have fluctuated, opening at $0.61 a share, but now sitting at $0.63 – the Group’s shares have increased by five percent over the last five days.
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