Mosaic Brands has reported a 195% increase in earnings for the first half of the financial year, with consumers aged 50+ driving post-pandemic growth.
Earnings before interest, taxes, and amortisation (EBITA) for the period was $15.8 million.
Mosaic Brands reported a total sales increase of 23% to $267 million for the first half to January 1, with a 12% lift in comparable store sales and a 0.3% growth in online.
Mosaic Brands CEO Scott Evans cited the strength of its core customer base for the result.
“Although the over 50s largely missed out on JobKeeper and other subsidies from the Government during the pandemic, they have accumulated significant savings on hand of up to $200 billion,” Evans said.
“They are amongst the most resilient in the face of interest rate rises with relatively lower exposure to mortgage pain and, in Australia, they are emerging as one of the most powerful consumer segments in retail.”
Mosaic Brands has reported continued momentum in the first six weeks of FYH2, with 33% lift in comparable in-store sales on the previous corresponding period.
Evans confirmed a further 130 stores would open in the next 12 months as customers returned to bricks-and-mortar shopping.
“Throughout the half, Mosaic’s trading rebound continued to gain momentum as customers increasingly returned to in-store shopping,” Evans said.
“This, along with a completely reformed business cost structure and online sales revenue from our omnichannel brands that did not decline from COVID highs, allowed the Group to achieve comparable store growth resulting in an EBITDA 195% higher than the prior period."
Meanwhile, the Group’s pure play online retailer EziBuy finished the period down 50% compared to the previous corresponding period.
“While EziBuy’s performance is being addressed, we’re pleased that our digital sales across all our omnichannel brands are performing exceptionally well as customers return in-store,” Evans continued.
“Certainly, our customers are showing they’re strongly supportive of a true omnichannel approach to retail.”
Mosaic Group now has over 7.7 million members across brands such as Noni B, Katies, Millers and Rockmans.