Shares in women’s fashion retailer Mosaic Brands fell more than 55 per cent after forecasting a full year loss, citing continued COVID disruptions during the trading period.
Mosaic Brands Limited owns several clothing retailers including Noni B, Millers, Rockmans, Katies and Rivers.
The company released an ASX announcement today, saying its online sales have continued to grow with the removal of most COVID-related health orders across Australia.
In-store trading and sales momentum improved throughout late May but Mosaic said it was still below expectations.
“However, given the continued disruptions to trade during the period, Mosaic expects to report a loss for the second half, which will result in a full year loss for FY22,” the announcement said.
“This is despite the Group delivering a profit in the first half of FY22, notwithstanding four months of lockdowns.
“The May trading month, which included the key Mother’s Day period, continued to see overall trading conditions improve gradually, however at a rate that was below expectations, as our core customers remained highly cautious of the ongoing risks associated with Omicron.”
The ASX announcement said Mosaic Brands expected to return to profitability in the next financial year.
“Mosaic will provide a further market update in late July,” it said.
“Management is focused on closing FY22 and entering FY23 in a strong and clean position to maximise the year ahead.”
Mosaic shares closed the trading day down 55 per cent to trade at 20 cents.
