Guess which ASX retail share is rebounding 22% on Thursday?

Mosaic Brands closed down 53% yesterday after reporting it was looking at a full year loss in FY22.

Bernd Struben

Author bio

Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets.

Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel.

Areas of expertise

Australian and global share markets
Macroeconomic and geopolitical trends
Real estate

Education

Economics, University of Michigan

Favourite investment quote

"The four most dangerous words in investing are: 'This time it's different."
— Sir John Templeton

Published June 9, 2022 1:51 pm AEST

The All Ordinaries Index (ASX: XAO) is down 1% in early afternoon trade, but this ASX retail share is bucking the selling trend.

Big time.

Having earlier posted gains of more than 30% the Mosaic Brands Ltd (ASX: MOZ) share price is currently up 22%.

The specialty fashion retailer owns a number of name brands including the popular Noni B.

Happy girl shopping at clothes shop. — Image source: Getty images

Why is the ASX retail share rocketing?

With no fresh news out from the company today, it looks like investors may be driving up the Mosaic Brands share price following yesterday's 53% selloff.

Investors punished the ASX retail share after it released an announcement yesterday revealing that difficult trading conditions related to the pandemic will likely result in a full-year loss for the 2022 financial year. Management forecast the full-year loss despite Mosaic Brands delivering a profit in the first half of the financial year.

The company said, "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."

The ASX retail share closed at 20 cents yesterday and is currently trading for 25 cents.

Year-to-date the Mosaic Brands share price remains down a painful 61%.

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