Announcement • Dec 20
Mosaic Brands Limited Announces Reduction in Store Portfolio and Associated Redundancies Mosaic Brands Limited announced the planned closure of 160 stores, in connection with the ongoing restructure of the Group's operations. The closures and the resulting redundancies of approximately 480 casual, part-time and full-time store staff will be undertaken over the next 4-6 weeks. A total of 87 staff have now been made redundant from the Head Office since the date of appointment with 88 staff remaining. The reduction in the Group's store portfolio is expected to result in a reduction in ongoing costs and improvements to Mosaic's working capital position while a process for the sale and/or recapitalisation of the Group is progressed. Announcement • Nov 09
Administrator FTI Consulting Reportedly Kicks Off the Sale Process for Mosaic Brands Mosaic Brands Limited (ASX:MOZ)' voluntary administrator FTI Consulting has fired the starting gun on a sale process for parts of the embattled retailer that may be wound up or sold off following its collapse. First round bids are due on November 15, and the understanding is that the insolvency firm has already fielded approached from parties interested in the business. It comes after a flyer document was sent out on October 29 and information memorandums on November 6. Parties will get access to a data room on November 18 before binding offers are due on December 6. FTI Consulting and receiver KPMG will determine whether a potential sale will proceed five days after the final bid date. DataRoom understands that there has been interest in the data bases of certain brands in its stable that could create an opportunity for a rival to attract more customers. This column reported that many in the market are questioning who the buyer is for the business and a liquidation for at least parts of collapsed retailer looks likely, as a major restructure plan unfolds in the background that involves closing more than half its stores. The first creditors' meeting for Mosaic Brands was held on 07 November 2024. FTI Consulting has made an application to extend the covening period as part of the administration to enable the time before the second creditors' meeting be extended to find buyers or enter into a deed of company arrangement deal with lenders or landlords. At the second meeting, administrators will consider whether the company should be liquidated, returned to directors or be part of a DOCA. Announcement • Oct 08
Mosaic Brands Limited, Annual General Meeting, Nov 27, 2024 Mosaic Brands Limited, Annual General Meeting, Nov 27, 2024. New Risk • Sep 15
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended December 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.0x net interest cover). Share price has been highly volatile over the past 3 months (18% average weekly change). Negative equity (-AU$61m). Market cap is less than US$10m (AU$6.43m market cap, or US$4.31m). Minor Risks Latest financial reports are more than 6 months old (reported December 2023 fiscal period end). Large one-off items impacting financial results. Announcement • Aug 07
Mosaic Brands Limited to Report Fiscal Year 2024 Results on Aug 28, 2024 Mosaic Brands Limited announced that they will report fiscal year 2024 results on Aug 28, 2024 New Risk • Aug 06
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 13% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.0x net interest cover). Negative equity (-AU$61m). Market cap is less than US$10m (AU$8.21m market cap, or US$5.32m). Minor Risks Share price has been volatile over the past 3 months (13% average weekly change). Large one-off items impacting financial results. Announcement • Jul 18
Crocs, Inc. and Mosaic Brands Limited Announce Settlement of Litigation Crocs, Inc. Mosaic Brand Limited announced that they have settled a lawsuit in the Federal Court of Australia in which Crocs alleged that Mosaic's sale of certain molded foam shoes infringed on Crocs' intellectual property rights. Crocs, one of the world's leading casual footwear companies, has been selling its iconic Classic Clog shoes in Australia for almost 20 years. The Classic Clog is sold in more than 85 countries and has become one of the most recognizable footwear styles in the world. Crocs owns trademark registrations covering the iconic shape and design of its flagship shoe in more than 30 countries worldwide, including Australia. The case against Mosaic was filed in late 2021 upon Crocs' discovery that Mosaic was selling footwear that Crocs alleged is deceptively similar to its Classic Clog. The parties were able to agree on mutually agreeable settlement terms without admissions. While specific terms of the agreement are confidential, Mosaic has agreed to discontinue production and sale of certain molded footwear styles named in the litigation, and certain similar styles, before the end of the year. Reported Earnings • Mar 01
First half 2024 earnings released: EPS: AU$0.03 (vs AU$0.019 in 1H 2023) First half 2024 results: EPS: AU$0.03 (up from AU$0.019 in 1H 2023). Revenue: AU$254.5m (down 15% from 1H 2023). Net income: AU$5.38m (up 121% from 1H 2023). Profit margin: 2.1% (up from 0.8% in 1H 2023). Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 7.2% growth forecast for the Specialty Retail industry in Australia. Over the last 3 years on average, earnings per share has increased by 115% per year but the company’s share price has fallen by 43% per year, which means it is significantly lagging earnings. New Risk • Oct 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Australian stocks, typically moving 12% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.9x net interest cover). Negative equity (-AU$66m). Shareholders have been substantially diluted in the past year (66% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (12% average weekly change). Large one-off items impacting financial results. Market cap is less than US$100m (AU$20.5m market cap, or US$13.1m). Price Target Changed • Sep 08
Price target decreased by 38% to AU$0.18 Down from AU$0.29, the current price target is provided by 1 analyst. New target price is 20% above last closing price of AU$0.15. Stock is down 49% over the past year. The company is forecast to post earnings per share of AU$0.0075 for next year compared to AU$0.0018 last year. Reported Earnings • Aug 31
Full year 2023 earnings released: EPS: AU$0.002 (vs AU$0.11 loss in FY 2022) Full year 2023 results: EPS: AU$0.002 (up from AU$0.11 loss in FY 2022). Revenue: AU$524.1m (down 8.3% from FY 2022). Net income: AU$266.0k (up AU$11.7m from FY 2022). Profit margin: 0.1% (up from net loss in FY 2022). Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 5.5% growth forecast for the Specialty Retail industry in Australia. Over the last 3 years on average, earnings per share has increased by 112% per year but the company’s share price has fallen by 31% per year, which means it is significantly lagging earnings. Announcement • Aug 30
Mosaic Brands Limited, Annual General Meeting, Nov 16, 2023 Mosaic Brands Limited, Annual General Meeting, Nov 16, 2023, at 11:00 E. Australia Standard Time. New Risk • Aug 30
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended January 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Negative equity (-AU$67m). Shareholders have been substantially diluted in the past year (66% increase in shares outstanding). Minor Risks Latest financial reports are more than 6 months old (reported January 2023 fiscal period end). Market cap is less than US$100m (AU$30.3m market cap, or US$19.7m). Announcement • Jul 23
Mosaic Brands Limited Provides Preliminary Unaudited Earnings Guidance for the Fiscal Year 2023 Mosaic Brands Limited provided preliminary unaudited earnings guidance for the fiscal year 2023. For the year, the company expects to report total sales of circa $519 million, up 6.2% on fiscal year 2022. Reported Earnings • Mar 01
First half 2023 earnings released: EPS: AU$0.019 (vs AU$0.15 in 1H 2022) First half 2023 results: EPS: AU$0.019 (down from AU$0.15 in 1H 2022). Revenue: AU$318.3m (up 15% from 1H 2022). Net income: AU$2.44m (down 83% from 1H 2022). Profit margin: 0.8% (down from 5.2% in 1H 2022). Revenue is forecast to grow 7.1% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Specialty Retail industry in Australia. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has fallen by 38% per year, which means it is significantly lagging earnings. Announcement • Jan 25
Mosaic Brands Appoints Quentin Gracanin as Non-Executive Director Spotlight Retail CEO Quentin Gracanin will be joining the Mosaic Brands Board as a Non-Executive Director at the next Board meeting on the 22nd of February. Mr. Gracanin has been CEO and a Board member at the privately-owned Spotlight Retail for 12 of his 30 years in the retail sector. Price Target Changed • Jan 11
Price target decreased to AU$0.37 Down from AU$0.46, the current price target is provided by 1 analyst. New target price is 29% above last closing price of AU$0.28. Stock is down 53% over the past year. The company is forecast to post earnings per share of AU$0.016 next year compared to a net loss per share of AU$0.11 last year. Announcement • Dec 09
Takeovers Reportedly in Fashion for Mosaic, with Internal Bid Possible Mosaic Brands Limited (ASX:MOZ) is being discussed as a possible takeover target by its own managers, directors or shareholders. While no moves are under way, it is an option some insiders believe could be on the cards next year, with the directors believing the business is undervalued by the market. Mosaic Brands' future is expected to be up for discussion at the board meeting next Wednesday. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 3 highly experienced directors. 1 independent director (3 non-independent directors). Independent Non-Executive Director Jackie Frank was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Recent Insider Transactions • Oct 27
Insider recently bought AU$779k worth of stock On the 21st of October, Isaac Fried bought around 3m shares on-market at roughly AU$0.24 per share. This transaction increased Isaac Fried's direct individual holding by 51x at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought AU$1.0m more in shares than they have sold in the last 12 months. Reported Earnings • Sep 01
Full year 2022 earnings released: AU$0.11 loss per share (vs AU$0.028 profit in FY 2021) Full year 2022 results: AU$0.11 loss per share (down from AU$0.028 profit in FY 2021). Revenue: AU$619.7m (down 8.4% from FY 2021). Net loss: AU$11.5m (down AU$14.2m from profit in FY 2021). Over the next year, revenue is expected to shrink by 9.1% compared to a 5.3% growth forecast for the Specialty Retail industry in Australia. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 52% per year, which means it is significantly lagging earnings. Announcement • Aug 31
Mosaic Brands Limited, Annual General Meeting, Nov 10, 2022 Mosaic Brands Limited, Annual General Meeting, Nov 10, 2022, at 11:01 AUS Eastern Standard Time. Recent Insider Transactions • Jun 25
CEO, MD & Executive Director recently bought AU$172k worth of stock On the 21st of June, Scott Evans bought around 756k shares on-market at roughly AU$0.23 per share. This was the largest purchase by an insider in the last 3 months. This was Scott's only on-market trade for the last 12 months. Price Target Changed • May 02
Price target decreased to AU$0.60 Down from AU$1.88, the current price target is provided by 1 analyst. New target price is 9.5% above last closing price of AU$0.55. Stock is down 31% over the past year. The company is forecast to post earnings per share of AU$0.079 for next year compared to AU$0.028 last year. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 3 non-independent directors. Independent Non-Executive Director Jackie Frank was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Apr 26
Mosaic Brands Limited Ordinary Fully Paid Deleted from Other OTC Mosaic Brands Limited ORDINARY FULLY PAID (Australia) has been deleted from Other OTC effective from April 25, 2022, due to Inactive Security. Reported Earnings • Feb 28
First half 2022 earnings: EPS and revenues miss analyst expectations First half 2022 results: EPS: AU$0.15 (up from AU$0.13 in 1H 2021). Revenue: AU$277.6m (down 19% from 1H 2021). Net income: AU$14.3m (up 10% from 1H 2021). Profit margin: 5.2% (up from 3.8% in 1H 2021). Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 17%, compared to a 5.8% growth forecast for the industry in Australia. Over the last 3 years on average, earnings per share has fallen by 34% per year but the company’s share price has fallen by 40% per year, which means it is performing significantly worse than earnings. Reported Earnings • Sep 02
Full year 2021 earnings released: EPS AU$0.028 (vs AU$1.76 loss in FY 2020) The company reported a decent full year result with improved earnings and profit margins, although revenues were flat. Full year 2021 results: Revenue: AU$708.8m (flat on FY 2020). Net income: AU$2.72m (up AU$173.2m from FY 2020). Profit margin: 0.4% (up from net loss in FY 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 38 percentage points per year, which is a significant difference in performance. Executive Departure • Jun 25
Independent Non-Executive Director Sue Morphet has left the company On the 21st of June, Sue Morphet's tenure as Independent Non-Executive Director ended after 6.3 years in the role. As of March 2021, Sue still personally held 2.46m shares (AU$947k worth at the time). Sue is the only executive to leave the company over the last 12 months. Price Target Changed • May 24
Price target increased to AU$3.00 Up from AU$1.50, the current price target is provided by 1 analyst. New target price is 426% above last closing price of AU$0.57. Stock is down 33% over the past year. Price Target Changed • Mar 02
Price target lowered to AU$1.23 Down from AU$1.35, the current price target is an average from 3 analysts. The new target price is 54% above the current share price of AU$0.80. As of last close, the stock is down 31% over the past year. Reported Earnings • Feb 25
First half 2021 earnings released: EPS AU$0.13 (vs AU$0.13 in 1H 2020) The company reported a decent first half result with improved earnings and profit margins, although revenues were weaker. First half 2021 results: Revenue: AU$344.0m (down 19% from 1H 2020). Net income: AU$13.0m (up 6.2% from 1H 2020). Profit margin: 3.8% (up from 2.9% in 1H 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 96 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Jan 21
New 90-day high: AU$1.16 The company is up 70% from its price of AU$0.68 on 23 October 2020. The Australian market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 7.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$2.03 per share. Is New 90 Day High Low • Dec 09
New 90-day high: AU$0.93 The company is up 81% from its price of AU$0.52 on 10 September 2020. The Australian market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Specialty Retail industry, which is up 12% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is AU$1.58 per share. Price Target Changed • Dec 01
Price target raised to AU$0.73 Up from AU$0.56, the current price target is an average from 2 analysts. The new target price is 12% below the current share price of AU$0.82. As of last close, the stock is down 68% over the past year. Announcement • Aug 31
Mosaic Brands Re-Opens Westfield-Based Stores Mosaic Brands announced that following successful negotiations with Scentre Group, all non-Victorian stores in Westfield shopping centres have now reopened. By agreement with Scentre the commercial terms remain confidential. Victorian stores remain closed due to Stage 3 and 4 restrictions in the state. Announcement • Aug 10
Mosaic Brands Limited Closes All Stores Within Victoria Temporarily In the interests of the health and safety of its customers and store teams, Mosaic Brands Limited has closed all stores within Victoria temporarily. In response to the state government's imposition of stage 3 restrictions, the group closed 25 stores on July 1, 2020, 135 stores on July 8, 2020 & the balance 89 regional stores closed on August 5, 2020. All stores will remain closed until restrictions are reduced. The Group's circa 1100 stores in all other states and territories remain open along with all nine online department stores. 
