Australian group Mosaic Brands has slashed its operating cash outflow by more than $20 million dollars in the third quarter of FY23 compared to the same time last year.
In FY23, its operating cash outflow was at $17.6 million, down from $37.9 million in Q3 FY22.
Mosaic Brands is the parent company to fashion brands such as Rivers, Millers and Noni B.
Due to the seasonality of fashion purchasing in retail, Mosaic Brands said typically the end of each of the March and September quarters deliver net cash outflows and the December and June quarters deliver net cash inflows.
The Group said its overall net asset position and operating cash flow is expected to continue to improve following the outcome and implementation of its strategic review of EziBuy in the current quarter.
“Our omnichannel brands continued to benefit from the strong return to instore shopping post covid lockdowns and restrictions,” the company noted in a trading update.
“They have delivered +18% comparable in store sales growth for the January to March period against the prior year.”
Mosaic said it is encouraged by the continual return to in-store trading through the third quarter.
“Despite interest rate rises and cost of living pressures, this trend highlights both Mosaic’s unique customer segments' lower exposure to the current economic challenges along with a general consumer ‘flight to value’ which is aligned with the Group’s brand offering.
“The Group remains focussed and stocked for the key Mother’s Day period trading.”