Mosaic Brands has issued a trading update for FY22, expecting a loss for the financial year.
Despite reporting a profit for the first half of the year, Mosaic Brands revealed trading conditions had improved at a lower rate than expected.
In a statement to shareholders, the company said its core customers were "highly cautious" of the Omicron variant and impacted earnings.
While online sales and week-by-week sales have improved into June, the retailer expects inflationary and economic pressures to continue into FY23.
Mosaic Brands told investors its board is focussed on closing this financial year and entering the next in a “strong and clean position."