The fashion giant behind popular brands including Noni B has closed 288 stores since the pandemic began and doubled its profits.
The retail giant behind Noni B, Katies and Rockmans continues to spit the dummy with landlords who won’t budge on rent, revealing the number of stores it has closed has climbed to 288.
The number emerged in Mosaic Brands’ annual report, which lobbed on the ASX moments after trading ceased on the final official day of the earnings reporting season on Tuesday.
“The group continued to engage with landlords in reshaping our retail store rentals to the realities brought on by the pandemic,” the company said.
“Accordingly, the group closed 242 shops throughout the period (the 2020-21 financial year) where economical rentals could not be achieved.”
In a market update in late May, Mosaic Brands – which also owns Crossroads, Autograph, Rivers, Millers and W.Lane – advised it had shuttered 212 stores “where landlords had pre-pandemic expectations”.
That was a big jump from 123 in February.
At that time, chief executive Scott Evans warned that other store closures would “undoubtedly” follow, saying “we always foresaw that about 500 was going to happen”.
Chairman Richard Facioni revealed the 288 figure in the group’s latest corporate presentation, saying Mosaic Brands was left with 1091 stores nationally.
He defended the closures, saying the company had “acted quickly and decisively” as Covid-19 ravaged the retail sector and had been a leader “in publicly addressing uncommercial and inflexible lease arrangements that the pandemic served to highlight”.
“We took a series of difficult decisions within the business aimed at lifting margins, reducing stock, preserving cash and positioning the group for the future,” he said.
“Directors have focused on how, as one of the retailers most impacted by the pandemic, we can be one of the strongest to come out of it.
“The foundations are in place with group EBITDA now returning to pre-pandemic levels, with 288 fewer stores, a rapidly growing digital business, and with improving margins and lower, more efficient stock levels.”
The efforts have certainly improved Mosaic Brands’ bottom line, with it full-year results showing a doubling in net profit to $2.78m and a record 59 per cent margin, but there was no final dividend.
The company has enjoyed a huge surge in online sales, like many other retailers, and has moved onto the next stage of its plan, on Wednesday having its shares placed in a trading halt while it finalises arrangements for a planned capital raising.
Shares in Mosaic Brands last traded at 45.5 cents, well down from its 12-month closing peak of more than $1.15.
Originally published as Retail giant behind Noni B, Katies, Rivers and Rockmans reveals 288 stores shuttered since pandemic start
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