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.
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.