- Mosaic Brands’ (MOZ) shares have slid on news of a substantial earnings loss and store reductions in the company’s latest annual report
- The retailer, who runs fashion brands like Millers, Rockmans, Noni B, and Rivers, tabled a $45.8 million earnings before interest, taxes, depreciation and amortisation (EBITDA) loss in its FY20 financials
- MOZ chalks the loss up to Australia’s devastating bushfire season and the COVID-19 pandemic, which forced the retailer to shut up shop for nine-and-a-half weeks over crucial trading seasons
- Mosaic’s digital departments tried to hold up the annual results with a 35.9 per cent sales spike in the second half of FY20, but it wasn’t enough to bring the fashion retailer’s earnings into the black
- Now, it seems the group will have to take on further cuts to keep afloat: Mosaic is looking to cut between 300 and 500 stores in the next 12 to 24 months
- Following the news, MOZ shares have plummeted 14.7 per cent in intraday trade, priced at 58 cents at 12:20 pm AEST
Mosaic Brands’ (MOZ) shares have slid on news of a substantial earnings loss and store reductions in the company’s latest annual report.
The retailer, who runs fashion brands like Millers, Rockmans, Noni B, and Rivers, tabled a $45.8 million earnings before interest, taxes, depreciation and amortisation (EBITDA) loss in its FY20 financials.
MOZ chalks the loss up to Australia’s devastating bushfire season and the COVID-19 pandemic, which forced the retailer to shut up shop for nine-and-a-half weeks over crucial trading seasons.
“Today’s result does not reflect the consistent growth the Group has achieved over the past four years, nor does it reflect our circa 6000 strong team’s hard work and commitment during FY20,” Mosaic Brands’ Managing Director and CEO Scott Evans said in today’s release.
“We were forecasting EBITDA of $75 million for FY20 … That forecast was utterly derailed,” he continued.
Mosaic’s digital departments tried to hold up the annual results with a 35.9 per cent sales spike in the second half of FY20. Ultimately, however, it wasn’t enough to bring the fashion retailer’s earnings into the black.
Following the results, it seems the group will have to take on further cuts to keep afloat. Mosaic is looking to cut between 300 and 500 stores in the next 12 to 24 months.
MOZ Chair Richard Facioni said the company’s decision to close stores during stage three lockdowns was in line with its commitment to protect patrons and staff.
“The board and I also recognise the ongoing commitment of our 6000 Mosaic team members throughout what has been an unprecedented 12 month period and acknowledge the impact potential store closures will have on them in tough economic times,” he stated.
Ultimately, FY20’s financials mean no dividend will be allocated for the financial year.
“The retail rental market in Australia is not paused because of the pandemic — it is fundamentally changed for the future,” CEO Scott Evans concluded.
MOZ shares have plummeted 14.7 per cent in intraday trade, priced at 58 cents at 12:20 pm AEST.