Mosaic is the latest women’s fashion stock to be rewarded by shareholders
The turnaround at women’s fashion stock Mosaic Brands (ASX:MOZ) continued to unfurl and shareholders sent shares climbing upwards this morning.
Today the company gave a further update, telling ASX shareholders it expected full year underlying earnings of approximately $48 million – and that was before you considered the contribution of EziBuy which was a recent acquisition.
It expected a similar result in FY22, tipping earnings of $50 million even with the loss of JobKeeper.
The company said every week since Easter had been better and better with customers returning to stores as well as increase their spending online.
“After the toughest 18 months imaginable including the bushfires and COVID-19 pandemic, we are confident that Mosaic Brands has come through stronger and better with a very clear path to returning to our year on year track record of profitability and growth,” declared CEO Scott Evans.
“We have reshaped our cost base, our inventory holding and remained focused on margin rather than chasing sales at any cost.
“We believe that as a national retailer who made those difficult changes early, Mosaic Brands has never been in a stronger position to take on the future.”
Shares rose over 20 per cent today.
While Mosaic Brands is still some way off its 2019 highs, other women’s fashion stocks on the ASX have performed and reaped rewards from shareholders.
One is plus-size focused City Chic Collective (ASX:CCX) which in late 2017 was 11 cents but is $4.53 today.
The company has like Mosaic been shifting online and seen sales grow. In the first half of FY21 it made $119 million in revenue and a profit of $13.1 million – representing 13.5 per cent and 24.8 per cent growth respectively.
While it has made organic growth, it has also made it through M&A activity. Last year, it snapped up the ecommerce assets of Evans for $41 million.
Another is Cettire (ASX:CTT), while it hosts men’s fashion as well as women’s, it only listed 6 months ago but has grown from 50 cents to $2.22 also impressing shareholders with its growth in revenue and profits.