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Apparel retailer Mosaic Brands (ASX: MOZ), the owner of labels including Katies, Noni B, Millers and more, has today released an improved set of quarterly financial results as it continues to recover from two years of restricted trading conditions.
The Sydney-based clothing retailer expects to return to profit in FY23 with more shoppers returning to stores, illustrated by the fact June was the strongest sales month during the second half of the year.
Mosaic, which has roughly 1,000 stores in Australia and New Zealand, increased its operating cash inflow to $57 million during the June quarter – up $4 million from the same period in FY21.
The group’s online digital platforms continued to expand, with $223 million worth of digital sales now making up approximately 39 per cent of the group’s total turnover.
Earlier this year, the group reset its cost base and focused on stock management across the business, with third-party product revenue delivering $28.4 million in sales during the quarter - up 58 per cent year on year.
Mosaic Brands now expects EBITDA to be in the order of a $16 million loss for FY22, with a positive net cash position of $9.5 million in line with the ordinary cash inflow cycles.
Expecting the wider economic pressures to continue into FY23, management at Mosaic was pleased to see the fourth quarter trend of comparative in-store sales improvement continue into July.
The board has signalled its confidence that FY23 conditions will be more favourable and navigable than the previous two years.
The group confirmed it completed the purchase of the New Zealand e-commerce brand EziBuy during the first half of 2022, exercising its option to purchase the remaining 49.9 per cent stake in the business for $11 million, having acquired the majority stake in late 2019 for just $1.
Shares in Mosaic Brands (ASX: MOZ) jumped by 20.93 per cent to $0.26 per share at 10.55am AEST.
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