- After six weeks of closures, Mosaic Brands (MOZ) will be slowly re-opening its stores from May 11
- Mosaic owns brands such as Millers, Rockmans, Noni B, Rivers, Katies, W. Lane and more
- COVID-19 restrictions forced the retailer to close roughly 1400 stores across the country
- While it’s pleased to be reopening stores, Mosaic was able to increase online sales by 80 per cent in the past six weeks
- Unfortunately, this won’t protect the company from an expected EBITDA loss for the 2020 financial year
- Mosaic Brands is up a healthy 17.5 per cent with shares trading for 67 cents each
Mosaic Brands (MOZ) has announced it will slowly begin re-opening its stores from May 11.
The specialty retailer owns brands including Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W. Lane, Crossroads and more.
Mosaic was amongst the many retailers forced to close shop because of COVID-19. In fact, the company had to close roughly 1400 stores across Australia on March 26 2020.
During the temporary closures and trial openings, Mosaic has gained valuable insight into customers’ evolving shopping habits, store revenues and centre foot traffic.
Over the past six weeks, there has been more than an 80 per cent increase in online sales compared with the previous corresponding period. To accelerate its digital strategy during a wave of online shopping, Mosaic added 20 categories and over 100,000 stock keeping units (SKUs).
Mosaic is discussing these insights with its landlords to ensure that, as stores re-open, appropriate commercial terms are agreed and that it avoids further negative financial impacts.
While still maintaining strict safety measures to protect its 6800 staff members, Mosaic says it’s pleased to be re-opening.
FY20 earnings update
Due to the reduced foot traffic as a result of the COVID-19 pandemic, the progressive reopening and the anticipated gradual recovery in customer demand, Mosaic expects to report an earnings before interest, taxes, depreciation and amortisation (EBITDA) loss for the year 2020 financial year, with a second0half loss EBITDA of $32.7 million.
Despite this, the company believes the loss will be short term and expects a return of profit for the 2021 financial year.
Additionally, Mosaic attributes its ability keep its physical stores and office team members to the Government’s JobKeeper program. It also recognises the support of ANZ in facilitating access to the program.
Mosaic Brands is up a healthy 17.5 per cent with shares trading for 67 cents each at 1:57 pm AEST.