Australian (ASX) Stock Market Forum

MOZ - Mosaic Brands

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Noni B has successfully raised the capital needed to fund the acquisition of Millers, Katies, Crossroads, Autograph and Rivers from Specialty Fashion Group. $37.8 million was raised from institutional shareholders at $2.50 per share.

NBL hit news highs today and has closed at $2.72, up 15.74%.

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greggles said:
Noni B has successfully raised the capital needed to fund the acquisition of Millers, Katies, Crossroads, Autograph and Rivers from Specialty Fashion Group. $37.8 million was raised from institutional shareholders at $2.50 per share.

NBL hit news highs today and has closed at $2.72, up 15.74%.

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and price has continued on it's path higher.

The low daily volume may be a barrier to some getting involved.

Hopefully a member, applying a fundamental approach, will comment on the Company's accounts etc. ​
 
NBL had a good Christmas according to their update today. EBITDA expected to be at the upper end of broker consensus and looks like integration of the newly acquired stores is going well. Targets by Wilson and Morgans at $4.74 and $3.83 fwiw.
Management seems to be defying the downtrend in retail.
 
On November 26th, 2019, Noni B Limited (NBL) changed its name and ASX code to Mosaic Brands Limited (MOZ).
 
rcm617 said:
NBL had a good Christmas according to their update today.
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Not so good this year unfortunately. Trading Update H1 2020 released yesterday reported lower sales, mostly as a result of the bushfires. A fifth of their stores have been directly affected.

However, comparable sales through the second half of November and throughout December, a critical sales period for the Group, were significantly impacted by the ongoing bushfire tragedy. 20% of the Group’s stores have been directly impacted by the fires, and some 32% of the Group’s 1,386 stores are located in regional areas where consumer confidence has been particularly fragile. As a result, comparable sales for the half were 8% lower than last year.
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Share price has been knocked down to a low of $1.80 today. With retail in the state it is currently in, the MOZ share price may be depressed for a while. I image those regional areas are going to take a while to recover from the bushfires and sales may be less than normal for some time.
 
At the AGM they were still tracking in line with their forecasts so was certainly a bad couple of months.
I still think they have pretty good retail management and will recover in due course though they are still likely to have a couple of hard months. At present prices they are on a forward price to earnings of about 5 if they get back to normal trading. With the purchase of EziBuy their online trading will go up from 10% at present to 20%.
Bought a few more at these prices and if it drops a bit more will buy more. Should still be about a 6c FF dividend coming up. I think it is a good recovery stock but have been wrong many times before.
 
The net cash position should be stronger. It's gone from 7.1m to 4m in the half, add in the acquisition and the dividend and I don't like the way things look. Might take another look at this in several weeks after the 1/2 year report - but for now I don't trust them and think this will drop more. Lots of inventory, lots of intangibles.
 
Another one that 4 bagged from the Covid low

Mosaic Brands (MOZ) small reaction today to Scentre Group (SCG) closing Mosaic's stores nationally over rental dispute. Affects 129 stores ex Victoria. All Victorian stores were already closed. Still plenty of stores operating, looks like 1,100 - 129 = 971 stores - plus the 9 online outlets (contributing 10% and growing to sales).
Looks cheap, will check it out in the crash.

Daily
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Fashion retail giant to close up to 500 stores after pandemic ravages sales

By Richard Wood Aug 25, 2020

Fashion retailer Mosaic Brands will close up to 500 stores across the country after it recorded a $212 million loss due to the coronavirus pandemic.

The company behind clothing brands Rivers, Millers, Katies and Noni B had been "utterly derailed" by the coronavirus, Mosaic Brands CEO Scott Evans told shareholders at the announcement of its full-year results.

Mosaic Brands said the leases on nearly 80 per cent of its 1333 stores will expire over the next two years and it plans to close 300 to 500 of those over that time frame.

The company, which has 6000 employees, reported a statutory loss before tax of $212.1 million, a plunge of 1900 per cent on the prior year's statutory profit of $11 million.

Revenue fell 16.5 per cent to $736.7 million. The fashion retailer did not declare a dividend.

Online sales grew just 14.7 per cent during the year, far lower than other retailers.

As well as the coronavirus, Mosaic Brands said the devastating bushfires across Christmas and New Year periods badly hit sales.

The move to permanently shut more than a third of its store network comes after 129 of its stores in Westfield shopping centres were closed by landlord Scentre Group.

"The retail rental market in Australia is not paused because of the pandemic - it is fundamentally changed for the future. Some though not all landlords accept that reality, so while exact locations and numbers are to be determined, the group anticipates potentially 300 to 500 store closures over the coming 12 to 24 months," Mr Evans said.

"Shuttered stores work for no one so we aim to minimise closures, but not on uncommercial terms."
 
Had a look at MOZ on Friday and mused on $ 0.52 and thought it was getting due for a move again... typical. Although have been fairly lucky of late buying in the day before "pop goes the weasel"...
Not sure why it's popped, perhaps Victoria opening up a smidge?
Dunno.
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Not a long term hold that's for sure. It's a business in structural decline.

I suspect the victoria thing is the bounce, but for the reasons lifted above, I wouldn't go losing sleep over it.
 
Give it time. I'd be selling today if I held.

Bricks & mortar EVERYTHING is in structural decline.
 
The fairer sex likes to shop in shop.
I don't see that tendancy disappearing any time soon.
Covid has made people value their freedom...
 
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