- Mosaic Brands (MOZ) shares plummet on the ASX today after revealing it expects to report a full year loss for the 2022 financial year
- The retailer group reported a profit for the first half of FY22 and expected to see trading conditions continue to improve
- However, following continued disruptions over the May period, it anticipates a loss for the second half which will result in a full year loss
- While MOZ acknowledges wider economic pressures are likely to continue in to FY23, improved sales momentum as restrictions are lifted has given confidence it will return to profitability
- At market close shares were down 56.7 per cent at 19.5 cents
Mosaic Brands (MOZ) shares have plummeted on the ASX today after revealing it expects to report a full year loss for the 2022 financial year (FY22).
The company is touted as the largest specialty fashion retailer group in Australia and covers Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W. Lane, Crossroads and Beme.
In the first half of this financial year, MOZ delivered a profit, despite months of lockdowns due to COVID, and expected to see overall trading conditions improve.
However, in a statement to shareholders, the company disclosed that while trading conditions had improved, it was at a rate lower than expected.
The trading period included the key Mother’s Day period, however MOZ believes its core customers were highly cautious of the ongoing risks associated with the Omicron variant of COVID, which could have impacted sales.
As such, the company expects to report a loss for the second half of FY22, which will result in a full year loss for the financial year.
Mosaic also expects inflationary and wider economic pressures to continue into FY23, however it is starting to see in-store trading and sales momentum improve as restrictions are lifted across Australia.
The company garners confidence from the increased foot traffic and anticipates it will return to profitability in FY23.
In its statement, MOZ told investors its management team is focussed on closing this financial year and entering the next in a “strong and clean position” to maximise the year ahead.
At the end of trade, shares were down to a five year low, dropping 56.7 per cent to trade at 19.5 cents.