Australian clothing giant Mosaic Brands is expected to achieve a profit growth after going through a stage of crippling losses. The business has had to undergo a business restructure which involved a multi prong approach of closing stores, refinancing and cutting costs across the business. Mosaic Brands provided a trading update where it said earnings for the 12 months ending June will be in the range of $48 million before interest, depreciation and amortisation. Mosaic Brands have a stable of well known brands including Rivers, Rockmans, Katies, Millers and Noni B.

In the 6 months to December, Mosaic Brands received subsidies totalling $83 million from the Australian and New Zealand government as part of Covid related stimulus payments. In addition to this support, they also did not pay any rent for stores that were closed during the peak of the pandemic. Despite this support, the company recorded revenue of only $45 million. However,things are looking brighter for 2022 with the company expecting earnings to be $50 million. Mosaic Brands are also expecting that the intensive cost cutting measures currently being undertaken will make up for the loss of the JobKeeper Subsidies from the Australian Government. Cost cutting measure that the company undertook included the closure of 212 stores. These store closures were due to landlords refusing to reduce rents. The company has advised that 90 per cent of their leases will expire in the next couple of years and this means that there is likely to be further store closures.

To save when you shop at Katies, use a Katies promo code with your order and save at Katies.