The ASX-listed parent company of popular clothing retailers Noni B, Rivers, and Millers has warned that sales in its stores were hit by the “significant” impact from the bushfire crisis.
In a statement to the market on Tuesday morning, Mosaic Brands said 20 per cent of its 1,389 stores across the country had been “directly impacted” by the fires, which would lead to an 8 per cent drop in comparable sales for the December half. Mosaic’s other brands include W Lane, Katies, Rockmans, Crossroads, Autograph and Beme.
Thirty-two per cent of the company’s stores are in regional areas, where consumer confidence has been “particularly fragile”, the company said. The brunt of the sales drop came during the critical November and December trading period ahead of Christmas, which retailers rely on to fuel their results, it said.
This will see Mosaic’s comparable sales for the six months through December fall 11.1 per cent, a significant deterioration on the group’s 3.1 per cent sales decline in the prior half-year period.