Mosaic Brands reports $119 million in first-half online sales

Mosaic Brands remains on track with its strategic growth plans, despite losing 50,000 store trading days in the first half of FY22, it disclosed in a business update.

As the Omicron variant limits in-store traffic, Mosaic customers are increasingly comfortable shopping online, with the Group seeing a 21% increase in online sales compared to the corresponding period previous (PCP).

This increase allowed it to record $119 million in online sales during the period.

Additionally, EziBuy’s digital sales also increased by 10.6% during the six-month period.

Mosaic Brands CEO Scott Evans said that despite the disruption, the company is happy with its results.

“Although the past six months have been the most challenging business period of this pandemic to date, our continued digital acceleration has generated 40% of Group revenue.

“This latest result further highlights the global trend of consumers over 50 embracing the online channel, with sales for the first half of fiscal 2022 up 21% for Mosaic Brands, including a period record sales for Black Friday.

“This is further reflected as we move towards completing the full ownership and turnaround of EziBuy, with its online sales also up 10.6% for the period.

“This online growth is driven by our increased investment in digital talent and our continued drive to increase the number of third-party SKUs we offer on our sites from 200,000 to over 3.5 million spanning 30 categories. in just two years.

“We remain on track to achieve our goal of offering over 8 million SKUs by mid-2025,” he said.

But it wasn’t just the digital channel that was driving results for the business.

According to the update, the Group achieved its second consecutive six-month period of comparable store growth, up 1% on PCP, while the Group’s total revenue was $298 million.

Evans added that the company is pleased with these results, especially given the challenges of the pandemic.

“Across the group, we have lost just under 50,000 store working days this semester by complying with Covid-related health orders or independently deciding to close stores for health and safety. safety of our team and our customers.

“That was more than double the trading days lost for the same period a year ago.

“It’s particularly pleasing given that, despite the immense challenges we faced, Mosaic’s same-store sales rebounded throughout the key Christmas period of November and December as the lockdowns came to an end. and ended the semester at +1%, which enables the Group to now deliver two successive semesters of comparable growth.

“While the rapid spread of the new Omicron variant is currently impacting center traffic, the resetting and inventory planning we have undertaken across the business means we are well positioned and ready to tackle this last wave,” he said.

Mosaic reports that it expects H1 FY22 EBITDA to be around $8 million.

The company reports that this exceeds broker estimates by 16% and represents a $9 million increase on PCP (excluding JobKeeper).

The Group reports net cash ending at $38 million.

Additionally, Mosaic completed its new facility with Commonwealth Bank for $59 million in funds, more than double its previous arrangements with the bank.


Source link

David A. Albanese