Rivers owner Mosaic Brands claims vaccine rollout is healing sales

Rivers owner Mosaic Brands says the ramp up of Australia’s vaccine rollout is improving weekly sales performance.

The retailer, which also owns Rockmans, Noni B and Katies, revealed it was “well positioned” for future growth beyond the pandemic, claiming it expects to generate positive earnings if no further major lockdowns occur.

In a trading update lodged to the Australian Stock Exchange, Mosaic said the acceleration of vaccines being delivered across the country had boosted the confidence of shoppers who were visiting stores more.

Mosaic chief executive Scott Evans said the company had suffered its toughest 18 months, with both bushfires and Covid-19 denting its ability to perform.

“Aligned with the vaccine rollout, since Easter every week sees more and more of our customers heading back into store,” Mr Scott said.

“Encouragingly, even with the gradual return to normalised shopping behaviour our online sales continue to perform well and grow.”

Mosaic flagged it missed out on the sugar hit felt by most retailers during 2020, as a result of its core target customers being ultra sensitive to the virus and choosing to stay away from shopping precincts.

For financial year 2021, Mosaic is expecting to book an underlying earnings before interest, tax, depreciation and amortisation of $48 million.

Sales in the coming financial year are tipped to hit $50 million on a like-for-like basis.