Mosaic Brands is expecting a return to profitability in FY23.
In an update the shareholders, the retail group confirmed trade is improving week-on-week following Omicron and inflationary pressures in the last quarter.
While wider economic pressures are expected to continue into FY23, the return of the Group’s core in-store customer gained week by week momentum in June, resulting in it being the strongest month of the second half.
This was seen through the comparative in-store sales for the fourth quarter being flat on the prior corresponding period and was a significant improvement against the preceding periods which were tracking around -8%.
Mosaic Brands reported this positive trend continuing into July.
The Group now expects the EBITDA to be in the order of a $16 million loss for FY22 and cash ended at a positive $9.5 million net cash position.
The EziBuy acquisition was fully completed during the half and funded from Group cash.
Digital sales continue to grow on the prior year and now contribute approximately 39% of the Group’s turnover.
Third party product revenue also delivered $28.4 million in sales for the year (58% growth on PCP).
Mosaic Brands owns and operates nine retail clothing brands, predominately within women’s apparel and accessories within Australia and New Zealand, sold through its network of circa 1,000 stores and its online digital department platforms.