Fashion retailers Accent Group, Mosaic record healthy sales

Owners of some of Australia’s biggest fashion brands have reported strong trading results in the first half of December, with Accent Group (ASX: AX1) and Mosaic Group (ASX: MOZ) both posting sales booms during the holiday season. enjoying

Accent Group, whose brands include Platypus, Hype and Glue Store, announced that sales reached $825 million, up 39% year-over-year. and sales of $36 million.

The company also reported that it expects earnings before interest and taxes (EBIT) for the first half to be in the range of $90 million to $92 million, with sales up 33% excluding the impact of the last trading week. Added.

Shares of Accent Group surged 11% this morning on the back of news released a week after the retailer. JB Hi-Fi (ASX: JBH) When Super Retail Group (ASX: SUL) We also had a successful promotional period during the holiday season.

The strong results stand in contrast to City Chic, a struggling plus-size fashion retailer. A loss of $2.5 million to $4 million is expected in the first half of December due to lower revenues from major sales events.

Accent Group also said January trading was in line with expectations, including a continued recovery from last year’s soft trading.

“Business conditions in November and December continued to be very positive and consistent across Accent Group retail and wholesale banners. We were able to achieve our sales,” said Accent Group CEO Daniel Agostinelli.

“Despite the currency impact and discontinued brand clearance, we are pleased with the year-over-year gross margin improvement.

“Overall, inventory levels are clean and well positioned for the start of the second half, reflecting strong inventory positions in the core line and early shipments of wholesale product for second half sales. increase.”

Another Australian retailer enjoying strong sales is Mosaic Brands (ASX: MOZ), where revenue doubled year-on-year to $15.8 million.

The apparel retailer, which includes Noni B, Katie’s and Millers in its portfolio, also revealed that it expects the online segment to reach up to 8 million products by the end of the year, with 130 new stores opening in 2023. bottom.

While shopping at the company’s stores hasn’t reached pre-pandemic levels yet, Mosaic Group CEO Scott Evans said that number continues to grow month-by-month, with more customers on an average transaction basis. I am shopping for

Sales at pure-play online retailer EziBuy, in which Mosaic bought a 49.9% stake two years ago, fell 51%, but the group expects trading to improve later in the second half as operational improvements are introduced. said that

“Consistent with our last update in November, Mosaic’s transaction recovery continues to gain momentum as customers increasingly return to in-store shopping after three years of being impacted by COVID,” Evans said. has said.

“Although we are not yet at pre-pandemic levels, in-store purchases continue to increase month over month, with customers buying more per average transaction basis.

“This result shows how much Mosaic has changed not only to come out of the other side of COVID, but also to become a stronger and more sustainable business in a very different retail environment than it was just three years ago. I am emphasizing that

Mosaic appoints new director

In connection with the deal update, Mosaic Brands also announced that Spotlight Retail CEO Quentin Gracanin will join the group’s board of directors as a non-executive director from February 22, 2023.

Gracanin has spent 12 of his 30 years in the retail sector as CEO and director of privately owned Spotlight Retail.

Mosaic Chairman Richard Fasioni said, “Spotlight, with its depth of COVID management, has given us a huge boost to Mosaic’s 2021 capital increase.

“As the Group’s turnaround accelerates, Quentin brings an extensive understanding of retail operations, adding to the Board’s existing expertise.

We welcome Quentin to our Board and look forward to working closely with Spotlight, one of Australia’s leading retailers, and Quentin to drive shareholder value. ”

MOZ shares were up 3.5% at 11:55 AEDT at 30 cents per share.

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