Join our daily newsletter At The Bell to receive exclusive market insights
- Retail group Mosaic Brands (MOZ) says Australia’s ongoing bushfires have affected sales
- The group, who owns fashion brands including Rockmans and Noni B, has had 20 per cent of its stores directly impacted
- Bushfire activity has led to fewer customers in regional areas which has hurt sales in 32 per cent of the group’s stores
- As a result, for the first half of the financial year, sales are down eight per cent year on year
- Despite struggling sales, Mosaic Brand’s earnings before interest, tax, depreciation and amortisation is up 13 per cent, to total $33 million
- Mosaic Brand’s share price is down over 15 per cent, with shares trading for $1.91 each
Retail group Mosaic Brands (MOZ), which operates fashion brands such as Rockmans and Noni B, has said the ongoing bushfire activity across Australia has hurt sales.
In a trading update released to the Australian market today, the group revealed sales during November and December were “significantly impacted” by the fires.
According to Mosaic Brands, 20 per cent of its stores have been subject to direct impact, and 32 per cent of its stores are located regionally – which has seen decreasing numbers of shoppers. As a result, sales for the first half of the 2020 financial year are down eight per cent year on year.
Despite the impact to sales, Mosaic Brands’ underlying earnings before interest, tax, depreciation and amortisation for the first half of the 2020 financial year is up 13 per cent on the last comparable period. It is expected to total around $33 million, subject to verification from the company’s auditors.
In response to the bushfire tragedy, Mosaic Brands has donated $50,000 to the St. Vincent de Paul Bush Fire Appeal. Additionally, the retail group is donating roughly $860,000 worth of clothing to the GIVIT charity.
Going forward, Mosaic Brands said, “the group is well prepared for the second half” of the 2020 financial year.
As outlined in today’s release, the company has $4 million in net cash, and dividends are still set to be paid. Earnings during the second half are expected to demonstrate higher growth year on year.
As of midday trade, Mosaic Brands earnings have taken a hit, currently sitting almost 15.5 per cent in the red. Shares in the company are trading for $1.91 each.
