MOZ - Mosaic Brands

It's just old women keeping things hanging by a, er, thread.

It's like newspapers - nobody under 50 reads newspapers any more either. When the 50+ die, that'll be the final thread severed.

Strong Buy at the moment in my opinion.

verce said:

Strong Buy at the moment in my opinion.

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Why?

greggles said:

Why?

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I think the retail outlets under their umbrella are very solid, and when retail picks up it should do nicely!

Maybe these words from the 29th October trading update gives an image of overall transformational change to online that @over9k has been banging on about.
Retail needs to have both a great online shopping experience as well as the novelty bricks and mortar.
Those that want the bricks and mortar will be willing to travel somewhat...


“Consistent with our comments at the 2020 full-year results announcement, since August we have closed 73 stores in response to unrealistic rental requests and a permanent shift towards online purchases, “ said Mosaic CEO Scott Evans.

“Our online sales for the first quarter are up 31% on the previous corresponding period (PCP), with the amount of SKUs or items available on our websites growing from 150,000 to over 250,000 in just eight weeks.”

Mr Evans said the growth of online, reduced discounting and a 50% drop in inventory holdings, had seen margins grow to 67% compared to 61.8% for the PCP.

“We’re encouraged that a number of landlords have in recent weeks come to the table on rental reductions but not all have and we expect up to a further 250 store closures by June 2021,” said Mr Evans.

I suspect the problem is masked by the temporary boost to online sales from Covid. There will always be B&M retail, and there will always be some good businesses in the sector, there will also be a mix of good and bad businesses in online retail. Covid may just have saved MOZ for the time being, but when things return to normal I am not sure they will have a viable business.

Never underestimate the power of Women.
Especially when clothes shopping...
Hit a high of 1.19
(Thats 1.4 bags since mid year musings...)
Not held though.

frugal.rock said:

Never underestimate the power of Women.
Especially when clothes shopping...

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Or any Shopping for that matter!!

frugal.rock said:

Never underestimate the power...

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of opportunism

Mosaic Brands fined after misleading consumers over hand sanitiser​

Clothing retailer Mosaic Brands is counting the cost of selling useless hand sanitiser and dodgy face marks at the height of the coronavirus crisis.

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The retailer, which owns clothing chains Noni B, Millers, Katies, Rockmans, Autograph and Rivers, has been forced to pay penalties of $630,000 after admitting to breaching consumer laws by making false or misleading claims about hand sanitiser and face masks advertised on its websites and via direct marketing between March and June last year.

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According to the Australian Competition and Consumer Commission, Mosaic Brands advertised that its Air Clean hand sanitiser contained 70 per cent alcohol, but a sample tested by the ACCC was found to contain only 17 per cent alcohol.

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Apparently Mosaic has closed 288 shops and doubled its profit.
From the article:
Mosaic Brands (ASX: MOZ) has entered a trading halt this morning as it gears up to announce a capital raise, following a return to profitability in FY21 for the group behind such brands as Katies, Noni B, Autograph, Crossroads and Millers.

Yesterday the company hit its financial targets in line with previous forecasts, with an EBITDA of $48 million compared to a $45 million loss in FY20.

The result does not include the results for New Zealand-based e-commerce clothing retailer EziBuy, in which Mosaic has a shareholding and which also returned to profitability with EBITDA of $3.7 million after two years of losses.

Mosaic - also responsible for brands Millers, Rivers, Rockmans and W.Lane - saw its sales decline by 10 per cent during the period to $588 million, but an improvement of margins led to a better bottom line.

Online sales grew by 19 per cent to $111.4 million and now also represent 19 per cent of total revenue. This was achieved partly thanks to an expanded retail offering, with the number of online offerings growing 10-fold to 1.5 million stock keeping units (SKUs).

"Notwithstanding significant ongoing disruptions to our business throughout the year, including numerous lockdowns and store closures, we are incredibly pleased with the results we have achieved and the return to profitability due to the actions we took to reset the entire group for the future," Mosaic Brands CEO Scott Evans said.
"The benefits of those actions became evident in the fourth quarter, which delivered our second most profitable Q4 on record with comparable sales growth of 27.9 per cent and comparable margin growth of 133 per cent, against a backdrop of subdued sentiment amongst our core customer group due to COVID-19," he said.

Evans said approximately 200,000 in-store only customers moved to also shop online, and the group acquired 200,000 new online only customers as a result of its expanded category and product ranges.

"We expect this trend to continue and this underpins our focus for FY22, being big stores, big brands, and an even bigger online range to meet our customers’ shifting purchasing behaviour."

Nonetheless, Mosaic's management is eager to set up a buffer through a strengthened balance sheet, given the disruption to momentum over the past two months due to widespread lockdowns. The trading halt in anticipation of the capital raising announcement is expected to be in place until no later than the start of trading on 3 September.

Mosaic Brands were crunched on Wednesday, plunging 55% after the company sprung a bad news downgrade on investors that contained the unexpected revelation of a loss for the year to June.

Mosaic said the loss would come despite a profit for the half year to December and an improved May. The June half year will see a loss big enough to outweigh the first half result of profit before tax of $21.4 million.

The new guidance came three weeks before the end of the company’s financial year, so the loss is pretty certain.

“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. “Online sales have continued to grow strongly and, with the removal of most health orders across Australia, in-store trading and sales momentum has improved week on week throughout late May and into June.

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“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. “This is despite the Group delivering a profit in the first half of FY22, notwithstanding four months of lockdowns.”

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Investors were told a profit was on track for the 2023 financial year starting 01 July, but that was ignored. Down, down, down. Closed at 20c.

“While inflationary and other wider economic pressures are expected to continue into FY23, the recent strengthening the Group is seeing in trade gives the Board confidence that conditions ahead are more favourable and navigable than the previous two years of managing the impact of COVID and lockdowns. As a result, Mosaic expects to return to profitability in FY23. Management is focussed on closing FY22 and entering FY23 in a strong and clean position to maximise the year ahead.”

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Quarterly Activities Report – Q4 FY2022
The Board of Directors of Mosaic Brands Limited (ASX: MOZ) releases its cash flow report (Appendix
4C) for the quarter ending 3 July 2022 (“the quarter”) and provides an update during the quarter.
Summary
• Operating cash inflow for the quarter $57 million, improvement on pcp by $4 million ($53 million
inflow).
• Year-to-date cash inflow of $44.6 million (no JobKeeper).
• Mosaic online turnover contributes 39% of the Groups sales and grew to $223 million (7% up
on pcp).
• As previously outlined, the Group has reset its cost base and continues to focus closely on cost
and stock management across the business.
• Trading improves week on week in the quarter with the Group expecting to return to profitability
in FY23.
Principal activities
Mosaic Brands owns and operates nine retail clothing brands, predominately within women’s apparel
and accessories within Australia and New Zealand, sold through its network of circa 1,000 stores and its
online digital department platforms.
FY22 Commentary and Update
Notwithstanding the ongoing impact Omicron and inflationary pressures seen during the last quarter, the
Group’s recovery from two years of restricted trading conditions continues.
Consistent with that update, trading has improved week on week after the Group experienced adverse
trading conditions early in Q3 and during the Mother’s Day period stemming from the ongoing impacts of
the Omicron COVID-19 variant.
The Group now expects the EBITDA to be in the order of a $16 million loss for FY22 and cash ended at
a positive $9.5 million net cash position in line with the ordinary cash inflow cycles. The EziBuy
acquisition was fully completed during the half and funded from Group cash.
Digital sales continue to grow on the prior year and now contribute approximately 39% of the Group’s
turnover. Third party product revenue also delivered $28.4 million in sales for the year (58% growth on
PCP).
While inflationary and wider economic pressures are expected to continue into FY23, the return of the
Group’s core in-store customer gained week by week momentum in June, resulting in it being the
strongest month of the second half. This was seen through the comparative in-store sales for the fourth
quarter being flat on the prior corresponding period (“pcp”) and was a significant improvement against
the preceding periods which were tracking around -8%. Pleasingly management are seeing this positive
trend continuing into July

The Group enters FY23 in a strong and clean stock position to maximise the year ahead.
This gives further confidence to the Board that conditions ahead are more favourable and navigable
than that of the previous two years of managing the impact of COVID lockdowns.
With its long track record of managing costs while serving one of the largest cost-conscious customer
demographics in Australia, Mosaic Brands believes that in an inflationary environment it is strongly
positioned to achieve growth and accelerate its recovery.
As a result, Mosaic expects to return to profitability in FY23.
Related party payments made during the quarter
During the quarter MOZ made rental payments of $40,000, Board Fees of $40,000 with EziBuy incurring
3PL distribution costs of $15,000. Rental and 3PL distribution costs paid were at normal commercial terms
and conditions.
Use of Funds Statement
The Company confirms that the quarter is not included in a period covered by a “use of funds” statement
or expenditure program in a prospectus, PDS or information memorandum previously lodged under ASX
Listing Rule 1.1.
All financial figures in this release are preliminary in nature and are subject to finalisation and review by
the company’s auditors.
– END –


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DYOR

i hold MOZ

verce said:

Strong Buy at the moment in my opinion.

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verce said:

I think the retail outlets under their umbrella are very solid, and when retail picks up it should do nicely!

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Turned out to be a bad call. MOZ is struggling at the moment and today they have put EziBuy, one of their online brands, into administration for restructuring. With a return to in store shopping EziBuy has seen sales slump 51% in the first half of FY23 as compared to the previous corresponding period.

Frankly, the EziBuy site didn't have much personality and selling clothes, shoes and accessories is a really hard game to win due to the high cost of returns. There was always going to be some rationalisation of online retail once in store shopping picked up last year.

The big question is, how strong are their other brands? Lots of question marks and uncertainty hanging over MOZ at the moment.

What gives?
Trading inside knowledge.
Chart update.

i still hold ( deep under water )

maybe it isn't a train coming down the tunnel

but could easily be false hope

i guess time will tell

Underperforming women’s wear retailer Mosaic Brands (ASX:MOZ) regards the six months to December as a 'turning point' for the embattled group.

Retiring CEO Scott Evans stated in commentary that the group is now in a better position than it has been for a while, with net profit after tax rising 38% to $5.4 million. There has been a sharp cut in inventory to more manageable levels, with only a 6.6% drop in comparable store sales.

The company reported that the net profit "was after absorbing a negative impact of $4.3m due to an adverse currency movement against the USD, with an EBIT of circa $13.1 million ($17.4 million normalized for USD impact), against $13.7 million in the December 2022 half."

Evans stated in Thursday’s earnings release that “A pre-Covid track record of profitability has resumed, as seen over the recent few years.”

"The Group has delivered a $13.5m improvement over the last 6 months in its net current assets position and projects further balance sheet improvements for the second half of FY24 and into FY25.

“The Group has also made significant progress in securing a refinancing package with Hilco Capital that we expect to sign in the coming weeks, which provides greater operational flexibility for Mosaic.

"Finally, we have also received in-principle agreement to extend or refinance the convertible notes with the noteholders representing the majority of notes on issue,” said Mr. Evans.

The company announced Erica Berchtold's appointment as CEO of Mosaic Brands, with Mr. Evans retiring from the Group. Berchtold was previously named CEO of Best and Less, but it was taken over in 2023 before she could start, and before that, she led the online retailer, The Iconic, as well as served as managing director of Rebel.

Mosaic Brands Chairman Richard Facioni said in Thursday’s statement, “Having put the Group back on its feet operationally, strategically, and financially, and having successfully navigated the Group through Covid, Scott informed the Board some months ago of his intention to retire."

“This facilitates a seamless leadership transition to Erica, with Scott stepping down post the release of these results before working through a three-month handover period,” Mr. Facioni added.

“Over the past 10 years, Scott has overseen the amalgamation of nine underperforming and loss-making brands and has successfully integrated them and turned them around.

"The Group experienced 5 consecutive years of growth and profitability under his stewardship, until this was derailed by Covid.

"He has now set the business up for success in the coming years, under new leadership, by building an online operation from the ground up, resetting our store strategy, and broadening our customer base."


woz da goz, MOZ?

Trading Update

Mosaic Brands (“Mosaic” or the “Group”) today provides a trading update for the 2024 Financial Year.

Following a strong first half, with the Group achieving a $13.1 million EBIT*, the second half of FY24has been more challenging for Mosaic and across the discretionary consumer sector more broadly.

Further, Mosaic was negatively impacted during the half by disruptions as it migrated to a fully integrated logistical supply chain and distribution system with a newly appointed global partner.
The implementation disruptions experienced by Mosaic were greater than anticipated, delaying the delivery of inventory leading into the key Mother’s Day trading period.
This, combined with softness in consumer spending, severely impacted revenue and earnings in the fourth quarter.
As a result, the Group now expects the full year result for FY25 to a marginal loss at the Operating EBITDA* level.
Notwithstanding the disappointing result for the second half of FY24, the Group anticipates a recovery in the first half of FY25.
The issues experienced moving to the new logistics model have now been largely resolved and inventory is normalising across the Group, with comparable sales improving throughout June.

Further,the first half of FY25 will benefit from a 20% increase in inventory intake at a 10% lower cost price when compared with H1 FY24. FY25 will also benefit from the material annual cost savings associated with the new logistics partnership.

Mosaic continues to closely manage its working capital position during this period and is continuing to progress the terms of a refinancing or extension of its outstanding convertible notes.

All financial figures in this release are preliminary in nature and are subject to finalisation and review by the company’s auditors.

The Group will provide a full update when it posts its full year FY24 audited financial results in August.

Ends

i hold MOZ ( deep under water )

Trading Update

Mosaic Brands (“Mosaic” or the “Group”) today provides a trading update for the 2024 Financial Year.

Following a strong first half, with the Group achieving a $13.1 million EBIT*, the second half of FY24 has been more challenging for Mosaic and across the discretionary consumer sector more broadly.

Further, Mosaic was negatively impacted during the half by disruptions as it migrated to a fully integrated logistical supply chain and distribution system with a newly appointed global partner.

The implementation disruptions experienced by Mosaic were greater than anticipated, delaying the delivery of inventory leading into the key Mother’s Day trading period. This, combined with softness in consumer spending, severely impacted revenue and earnings in the fourth quarter.

As a result, the Group now expects the full year result for FY24 to be a marginal loss at the Operating EBITDA* level.
Notwithstanding the disappointing result for the second half of FY24, the Group anticipates a recovery in the first half of FY25.

The issues experienced moving to the new logistics model have now been largely resolved and inventory is normalising across the Group, with comparable sales improving throughout June.

Further,the first half of FY25 will benefit from a 20% increase in inventory intake at a 10% lower cost price when compared with H1 FY24. FY25 will also benefit from the material annual cost savings associated with the new logistics partnership.

Mosaic continues to closely manage its working capital position during this period and is continuing to progress the terms of a refinancing or extension of its outstanding convertible notes.

All financial figures in this release are preliminary in nature and are subject to finalisation and review by the company’s auditors.

The Group will provide a full update when it posts its full year FY24 audited financial results in August.

Ends

i hold MOZ ( deep under water )

this release is apparently an amendment to the release above , but so far i haven't spotted the difference ( maybe i am having a slow day )

Dona Ferentes said:

Underperforming women’s wear retailer Mosaic Brands regards the six months to December as a 'turning point' for the embattled group...
woz da goz, MOZ?

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now 3.3c
.
some think it may go under.