Here’s why the Mosaic Brands share price just crashed 56%

Investors are running for the hills.

| More on:
Falling asx retail share price represented by sad shopper sitting in mall

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Investors have dumped Mosaic brands shares at pace today following a market update from the company
  • The company expects to print a full-year loss in FY22 as trading conditions fall lower than expectations
  • In the last 12 months, the Mosaic Brands share price has sunk more than 68% into the red

Shares of Mosaic Brands Ltd (ASX: MOZ) have plummeted on Thursday and are now trading at clear 52-week lows.

Sellers were active early in the session, and since the open have dumped the ASX retail share more than 56% lower, extending losses to 67% this year-to-date.

TradingView Chart

What’s up with the Mosaic Brands share price?

Investors are exiting their Mosaic Brands positions at pace following a market update released by the company today.

In the update, Mosaic detailed that overall trading conditions had fallen lower than expectations, and that FY22 would result in a loss at the bottom line. It cited risks from Omicron as the underlying cause:

The May trading month, which included the key Mother’s Day period, continued to see overall trading
conditions improve gradually, however at a rate that was below expectations, as our core customers
remained highly cautious of the ongoing risks associated with Omicron.

Despite the headwinds, online sales continue to stretch up, while in-store demand has also ticked up as COVID-19 restrictions wind back.

However, the company said it expected “to report a loss for the second half, which will result in a full year loss for FY22”, given continued disruptions to trade during the period.

“This is despite the Group delivering a profit in the first half of FY22, notwithstanding four months of lockdowns.”

In this vein, the company expects to return to profitability in FY23, according to the release, such that management was “entering FY23 in a strong and clean position to maximise the year ahead”.

Further updates are expected in July.

In the last 12 months, the Mosaic Brands share price has sunk more than 68% into the red, and 63% in the past single month of trade alone.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on 52-Week Lows

man bending over to look at red arrow crashing down through the ground
52-Week Lows

Why is the Australian Strategic Materials share price sinking 10% today?

What's got Australian Strategic Materials shares in a tailspin?

Read more »


Why is the Newcrest share price slipping to a new 52-week low on Friday?

The gold miner and its peers are having a tough end to the trading week.

Read more »

An older man wearing glasses and a pink shirt sits back on his lounge with his hands behind his head and blowing air out of his cheeks.
Financial Shares

Pendal share price slumps 10% to multi-year low amid continued outflows

The Pendal share price has hit a new low today...

Read more »

A man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phone
52-Week Lows

Here are 3 ASX 200 shares tumbling to new 52-week lows today

It's proving a day to forget for this trio of ASX 200 shares...

Read more »

a man with a moustache sits at his computer with his hands over his eyes making a gap between his fingers so he can peek through to his computer screen.
52-Week Lows

EML share price sinks 18% amid CEO’s unexplained departure

Shares in the payments company are having a shocker of a day.

Read more »

Kid with a brown paper bag on his head which has a sad face on it sits in front of an old style computer representing falling ASX 200 tech shares today.
52-Week Lows

These 3 ASX All Ordinaries shares are hitting new 52-week lows today

Here's why these All Ords stocks are suffering on Wednesday.

Read more »

a young man sits on the floor with his back against a sofa hunched over his phone in one hand and his other hand on top of his head as though he is seeing bad news as his face looks sad and anguised.
52-Week Lows

Down 18% in a week, what’s stolen the shine from the Regis Resources share price?

The gold miner's shares have lost their sparkle over the past week. Here's why.

Read more »

Three rock climbers hang precariously off a steep cliff face, each connected to the other with the higher person holding on and the two below them connected by their arms and rope but not making contact with the cliff face.
52-Week Lows

3 high-quality ASX 200 shares trading at 52-week lows right now

The recent sell-off may have created buying opportunities for these ASX 200 shares.

Read more »