The company announced the program yesterday. Since then, Viva Leisure shares have risen 6.45% to $1.32.

Viva Leisure is a high-tech health club operator. Its brands include Club Lime, Hiit Republic, and GroundUp.

Its new perks program offers investors a 25% discount on their health club membership.

You have to own a minimum of 1,000 Viva Leisure shares to be eligible for the offer. For non-individual shareholders, you need to hold a minimum of 5,000 shares to access the discount for three people.

Viva Leisure is not the only ASX-listed company to offer shareholder perks.

Here are some other examples:

The ASX shareholder discounts on offer today

AMP Ltd (ASX: AMP)

AMP runs a shareholder discount program that entitles ASX investors to home loan discounts. Dubbed AMP First, the principal and interest rate is currently 5.99% for owner occupiers and 6.19% for investors. A bunch of fees are also waived, including the $349 settlement and annual fees, and the $295 legal fee.

Cedar Woods Properties Limited (ASX: CWP)

Given Australia's housing affordability challenges, who wouldn't love a discount on their next home? Cedar Woods shareholders can receive a 5% discount on single residential blocks of land and a 2.5% discount on new houses, townhouses, and apartments in Cedar Woods' projects.

Beacon Lighting Group Ltd (ASX: BLX)

Beacon Lighting offers an 'Investor Pass' to its shareholders, providing access to tradie discounts and free delivery on all orders. Shareholders must hold a minimum of 500 Beacon Lighting shares to be eligible.

EVT Ltd (ASX: EVT)

Movie cinema and hotels operator EVT gives a Shareholders Benefit Card to investors who own more than 500 shares. The ASX shareholder discount program includes discounted movie tickets, a 15% discount on the best available hotel room rates, and a 20% discount on hotel food and beverages.

Mosaic Brands Ltd (ASX: MOZ)

Mosaic Brands is the business behind retailers Millers, Rockmans, Noni B, Rivers, Katies, Autograph, W. Lane, Crossroads, and Beme. Investors who own a minimum 2,000 Mosaic shares can apply for a Shareholders Reward Card, entitling them to a 10% discount on purchases from these stores.

Which ASX shares have canned their shareholder discounts?

Offering shareholder perks comes at a cost, which is why many companies don't do it — or have axed previous schemes.

Many years ago, Coles Group Ltd (ASX: COL) ran a shareholder discount program that reportedly cost $170 million per year before it was discontinued in 2004.

Competitor Woolworths Group Ltd (ASX: WOW) explains why it doesn't offer discounts on its website:

Woolworths'  focus is to aggressively drive down the cost of doing business, which allows the company to maximise profits and dividends to our shareholders.

Wesfarmers Ltd (ASX: WES) also explains on its website why it doesn't have a shareholder discount program for its retail stores:

We believe that the fairest and best way to reward shareholders is by providing a satisfactory return to shareholders through the payment of dividends and a strong share price.

Wesfarmers said a discount scheme would "also directly affect profitability".

Many ASX 200 bank shares used to offer perks packages, including card fee waivers and discounted interest rates.

ANZ Group Holdings Ltd (ASX: ANZ) discontinued its shareholder discount package in 2007, and National Australia Bank Ltd (ASX: NAB) did the same in 2019.

The post Viva Leisure shares surge 6% on shareholder discount program. Which other ASX companies offer ownership perks? appeared first on The Motley Fool Australia.

Earlier today the Fair Work Commission announced a 5.75% bump to minimum wages, effective from 1 July, which will result in a pay rise for 21% of Australian workers.

The minimum wage will rise from $21.38 per hour to $22.61 per hour. The weekly rate will rise from $812.60 to $859.32.

What will rising wages do to ASX retail shares?

Australian Retailers Association CEO Paul Zahra says businesses will struggle to absorb this additional cost.

Zahra referred to a cost-of-doing-business crisis, saying (courtesy The Australian):

Many retailers are under enormous financial pressure, with rising operating costs across the board. Supply chain costs have increased, utilities have increased, rent has increased, materials have increased and now labour will increase substantially.

This is before factoring in that discretionary spending is softening – leaving many retailers concerned about operating costs. We fear the scale of this increase will tip some businesses over the edge…

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) is the worst-performing market sector today, down 0.8% at the time of writing.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up 0.2% and the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.33%.

As we reported last week, official retail sales figures from the Bureau of Statistics (ABS) show an ongoing decline in spending in 2023 as rising inflation and interest rates start to impact consumer decisions.

Fastest fallers among ASX retail shares on Friday

Among the worst-hit ASX retail shares today is Adairs Ltd (ASX: ADH).

The Adairs share price tumbled 20% in earlier trading to hit a new 52-week low of $1.51.

This came after the homewares retailer released a trading update and downgraded its FY23 earnings forecasts.

As my Fool colleague James reports, Adairs management says the rising cost of living and higher interest rates are directly to blame for "a more subdued trading environment since April".

Some of the other fast fallers among ASX retail shares today are:

• The Mosaic Brands Ltd (ASX: MOZ) share price is down 5.6% to 17 cents
• The Lovisa Holdings Ltd (ASX: LOV) share price is down 1.9% to $19.89
• The Coles Group Ltd (ASX: COL) share price is down 1.3% to $17.90
• The Premier Investments Limited (ASX: PMV) share price is down 1.3% to $22.09
• The Temple & Webster Group Ltd (ASX: TPW) share price is down 1.2% to $4.84
• The Woolworths Group Ltd (ASX: WOW) share price is down 1.1% to $37.69
• The Endeavour Group Ltd (ASX: EDV) share price is down 0.9% to $6.20
• The Super Retail Group Ltd (ASX: SUL) share price is down 0.7% to $11.30

The post Why are ASX retail shares taking a hit on Friday? appeared first on The Motley Fool Australia.

Retail sales were flat overall in the month of April, following very small increases in March and February.

The bottom line is that retail sales are slowing in 2023, as the impact of rising inflation and interest rates starts to flow through the economy.

ABS head of retail statistics Ben Dorber said:

Retail turnover has plateaued over the last six months as consumers spent less on discretionary goods in response to cost-of-living pressures and rising interest rates.

Spending was again soft in April but was boosted by increased spending on winter clothing in response to cooler and wetter than average weather across the country.

What does weaker spending mean for ASX retail shares?

Household consumption is worth about 50% of Australia's gross domestic product (GDP), so that's why retail sales are an important yardstick for our economic health.

The data also provides insight into the categories of retail that are receiving more of our dollars.

According to today's figures, only two categories recorded higher spending in April. They were clothing, footwear, and personal accessories (up 1.9%) and department stores (up 1.5%).

Household goods spending declined by 1% — its third consecutive monthly fall.

We also saw the first fall in food spending following 13 months of increases. Spending at cafes and takeaway outlets fell by 0.2%, and general food shopping declined by 0.1%.

On the market today, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is among six out of 11 market sectors on the rise, up 0.33%. Meantime the S&P/ASX 200 Index (ASX: XJO) is up 0.07%.

Here are the risers and fallers among ASX retail shares on Friday, and how they're trending year to date (YTD).

Rising retail shares on Friday

Some of the top risers among ASX retail shares today are:

• The Dusk Group Ltd (ASX: DSK) share price is up 3.3% to $1.10, but down 41% YTD
• The Domino's Pizza Enterprises Ltd (ASX: DMP) share price is up 3.2% to $47.16, but down 29% YTD
• The Lovisa Holdings Ltd (ASX: LOV) share price is up 1.4% to $21.37, but down 7% YTD
• The Adairs Ltd (ASX: ADH) share price is up 2.4% to $1.91, but down 16% YTD

Falling retail shares on Friday

Some of the fastest fallers among ASX retail shares today are:

• The Universal Store Holdings Ltd (ASX: UNI) share price is down 5.1% to $2.98, and down 43% YTD
• The City Chic Collective Ltd (ASX: CCX) share price is down 5% to 38 cents, and down 17% YTD
• The Mosaic Brands Ltd (ASX: MOZ) share price is down 5.3% to 18 cents, and down 36% YTD
• The Mighty Craft Ltd (ASX: MCL) share price is down 5% to 9.5 cents, and down 47% YTD

Hitting 52-week lows today

The ASX retail shares hitting 52-week lows today include Mighty Craft shares, which dipped to 9.3 cents in earlier trade, Redbubble Ltd (ASX: RBL) shares at 38 cents, and Elixinol Wellness Ltd (ASX: EXL) shares at 1.4 cents.

The post Soft spending: How ASX retail shares are responding to a weak month appeared first on The Motley Fool Australia.

Within the first hour of market open, the specialty fashion retailer's shares hit an intraday high of 29 cents — a gain of almost 35% on Thursday's closing price.

However, some profit taking from investors has led its shares to retreat to 23 cents at the time of writing, up 6.98% on the day.

What did Mosaic report for Q4 FY22?

Here's a brief recap of how the company performed for the three months that ended 3 July 2022.

• Operating cash inflow of $57 million, up by $4 million on Q4 FY21
• Year-to-date cash inflow of $44.6 million
• Online sales grew to $223 million, up 7% on Q4 FY21 – representing 39% of group sales
• Management continues to focus on cost and stock inventory
• Closing net cash position estimated to be at $9.5 million

What happened during the quarter?

In a boost to the Mosaic share price, the ASX retail share stated that its "recovery from two years of restricted trading conditions continues".

This comes on the back of the ongoing COVID-19 impact as well as strong inflationary movements.

Nonetheless, the group's sales performance has improved week-on-week following weakened trading conditions early in the third quarter.

Mosaic is forecasting earnings before interest, taxes, depreciation and amortisation (EBITDA) to come in at a $16 million loss for FY22.

In addition, net cash is expected to be a positive $9.5 million – in line with the ordinary cash inflow cycles.

While retail headwinds are expected to continue into FY23, the group is seeing a return of its core customers week by week. In particular, June proved to be the strongest month of the second half.

The positive trend is also continuing into July.

With a clean stock position to maximise the year ahead, Mosaic is projecting a return to profitability in FY23.

It noted that "in an inflationary environment it is strongly positioned to achieve growth and accelerate its recovery".

Mosaic share price review

Since the start of 2022, the Mosaic share price has declined by more than 60%.

Strong market volatility and a gloomy economic outlook appear to have weighed down this ASX retail share this year.

Mosaic has a price-to-earnings (P/E) ratio of 4.86 and commands a market capitalisation of roughly $20.44 million.

The post 'Recovery continues': Why this ASX retail share surged 35% in morning trade appeared first on The Motley Fool Australia.

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.

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%.

The post Guess which ASX retail share is rebounding 22% on Thursday? appeared first on The Motley Fool Australia.

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.

The post Here's why the Mosaic Brands share price just crashed 56% appeared first on The Motley Fool Australia.

Investors apparently didn't mind too much on Thursday, with Mosaic shares shooting up 8.4% to trade at 58 cents mid-afternoon.

The fashion retail conglomerate, which owns brands such as Katies, Millers, Rockmans, Noni B and Rivers, put aside $5.6 million in the 2020 financial year as a 'lease make good' provision.

A lease make good provision is money set aside to restore a rented property back to a certain condition at the end of the lease.

According to the Australian Securities and Investments Commission (ASIC), it raised concerns to Mosaic that the $5.6 million was not enough.

"The adequacy of provisions to meet obligations is important in providing useful and meaningful information to investors and other users of financial reports."

$2.7 million added to Mosaic's provisions

ASIC took credit for Mosaic increasing the provision to $8.3 million in the just-reported 2021 financial year results.

The Motley Fool has contacted Mosaic Brands for comment.

The commission reminded the market that the directors of a company were primarily responsible for the financial report.

"Companies must have appropriate processes, records and analysis to support information in the financial report," stated ASIC.

"Companies should also apply appropriate experience and expertise, particularly in more difficult and complex areas of accounting policies and estimates."

This is not the first time Mosaic Brands has been in trouble with the authorities this year.

In May, the company paid a $630,000 penalty after confessing to making misleading claims about its hand sanitiser and face mask products.

According to the Australian Competition and Consumer Commission (ACCC), those offences happened at the peak of the first wave of COVID-19 between March and June last year.

NoniB's sanitiser claimed it contained 70% alcohol, Millers' sanitiser claimed 75% and a third product sold online claimed it was "WHO-approved". 

All of those claims were found to be false.

"Independent testing of the hand sanitisers commissioned by the ACCC found that one of the sanitisers tested contained an alcohol content of 17% and another had an alcohol content of 58%," ACCC deputy chair Delia Rickard said at the time.

The post ASIC enquiry costs Mosaic Brands (ASX:MOZ) $2.7 million appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are racing higher:

AnteoTech Ltd (ASX: ADO)

The Anteotech share price is up a further 22% to 22 cents. Investors have been buying this surface chemistry company's shares this week after it announced the signing of a distribution agreement in Turkey with Pera Medikal Anonim Sirketi. This deal is for the distribution of the EuGeni Reader platform and SARS-CoV-2 Antigen Rapid Diagnostic Test (RDT) in the country.

BlueBet Holdings Ltd (ASX: BBT)

The BlueBet share price has rebounded and is up 11% to $2.15. Investors have been buying the sports betting company's shares after analysts Morgans held firm with their add rating despite BlueBet missing out of a sports betting licence in the US state of Virginia. According to the note, the broker has retained its add rating with a reduced price target of $2.57. While disappointing, the broker remains positive on its prospects in US.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is up over 5% to $18.43. This follows news that the travel agent's shares have been upgraded by analysts at Credit Suisse this morning. According to the note, the broker has upgraded the company's shares to an outperform rating with an improved price target of $19.00. Credit Suisse made the move partly in response to the positive progress being made with the vaccine rollout.

Mosaic Brands Ltd (ASX: MOZ)

The Mosaic Brands share price has jumped 14% to 62 cents. This morning the retailer revealed an underwritten $32 million capital raising that will secure its future. Mosaic Brands notes that this will provide the business with additional balance sheet support until COVID-19 related lockdown measures are eased and stores re-open for trade.

The post Why AnteoTech, BlueBet, Flight Centre, & Mosaic Brands are racing higher appeared first on The Motley Fool Australia.

In morning trade, the retailer's shares are up 16.5% to 63.5 cents.

Why is the Mosaic Brands share price shooting higher?

Investors have been bidding the Mosaic Brands share price higher today after it secured its future via an underwritten capital raising.

This morning the company announced an underwritten $32 million capital raising via the issue of convertible notes. This comprises a $10 million strategic placement of notes to Danfin Pty Ltd and a $22 million 1 for 4.39 pro-rata non-renounceable entitlement offer of notes to eligible shareholders.

The aforementioned notes will be secured by a second-ranking security behind the existing Australia and New Zealand Banking GrpLtd (ASX: ANZ) facility. Positively, the release advises that ANZ has provided consent to the issue of the notes.

Why is the company raising funds?

Mosaic Brands is raising funds for general working capital purposes and to provide the business with additional balance sheet support until COVID-19 related lockdown measures are eased and stores re-open for trade.

Following the completion of the capital raising, Mosaic Brands expects to be well funded through the current period of disrupted trading. This is based on conservative assumptions around lockdown easing measures and the timing of stores re-opening.

In addition, Mosaic Brands intends to exercise its option for the remaining shares in Ezibuy during September. Payment terms for the $11 million acquisition consideration are proposed to be extended from 31 December 2021 to provide additional balance sheet flexibility. Mosaic Brands would have up to 30 June 2022 to settle the exercise price.

Mosaic Brands notes that it will have pro forma cash of approximately $88.1 million post completion of the offers.

The Mosaic Brands share price is down 23% in 2021 despite today's strong gain.

The post Why the Mosaic Brands (ASX:MOZ) share price is shooting 16% higher appeared first on The Motley Fool Australia.

Mosaic runs more than 1200 clothing stores across Australia under brands such as Katies, Millers, Rivers, Noni B, Autograph and Rockmans.

The Australian Competition and Consumer Commission (ACCC) announced Thursday that the company had confessed to breaching Australian Consumer Law (ACL) with misleading advertising for its "Health Essential" hand sanitisers and protective masks.

The alleged offences occurred at the height of the first wave of COVID-19 in Australia between March and June 2020.

NoniB's sanitiser claimed 70% alcohol content, Millers' sanitiser claims 75% and another sold online claimed they were "WHO-approved". None of these claims were true.

"Independent testing of the hand sanitisers commissioned by the ACCC found that one of the sanitisers tested contained an alcohol content of 17% and another had an alcohol content of 58%," said ACCC deputy chair Delia Rickard.

"This was also below the minimum 60% alcohol concentration recommended by Australian health authorities."

Mosaic also advertised its KN95 Kids Safety Masks as "CE/FDA certified" and that KN95 Adult Face Masks were "non-refundable". Both these claims were false.

"Our investigation also found that Mosaic Brands' Kids KN95 mask was not certified by European and US standard authorities as they had advertised," said Rickard.

Mosaic did not respond to The Motley Fool's request for comment. The Mosaic share price was down 1.47% on Thursday afternoon, to trade at 67 cents.

Mosaic's 'outrageous' ads designed to 'make a quick buck'

Consumer advocacy body Choice originally tipped off the ACCC to investigate Mosaic.

According to Choice campaigner Dean Price, the company is now paying the price for misleading the public at the height of health fears.

"It's never ok to make a quick buck by misleading people and Mosaic Brand's actions were particularly outrageous when people were doing their best to protect themselves from a deadly pandemic," he said.

"This action by the ACCC is a win for people and a reminder to businesses that they cannot get away with misleading consumers."

Mosaic would have got away with it if it weren't for the actions of one person.

"A supporter tipped us off that they didn't think the hand sanitiser they bought from Mosaic Brands was up to scratch," Price said.

"Independent testing that was funded by Choice supporters confirmed their suspicion and led us to make a formal complaint to the ACCC."

Refunds for customers

In addition to paying the fine, Mosaic has entered a court-enforceable undertaking that it would refund customers who bought the affected COVID protective gear.

The company will identify and contact customers who bought the products to offer a refund — even those who previously were refused.

The undertaking also compels Mosaic to execute a 3-year program of ACL compliance.

The post Mosaic (ASX:MOZ) admits dodgy ads on hand sanitiser, masks appeared first on The Motley Fool Australia.

At the time of writing, the fashion retailer's shares are rocketing 21.74% to 70 cents.

Let's take a closer look at what the company announced.

What's driving the Mosaic share price higher?

Investors are driving Mosaic shares higher after digesting the company's upbeat trading update and outlook.

In a statement to the ASX, Mosaic advised it has successfully completed a series of strategic initiatives to support growth. Previously, the COVID-19 pandemic impacted the company and created unique challenges which saw a severe decline in instore customer numbers.

However, Mosaic turned its attention to improving its internal metrics to offset the damage done. The group reshaped its cost base, inventory holding, and focused on margin rather than chasing sales. As a result, the company is seeing a gradual return to profitability and growth.

Recently, Mosaic renewed its $25 million working capital facility with Australia and New Zealand Banking Group Ltd (ASX: ANZ). However, the credit facility is expected to be reduced to $15 million in January 2022.

In addition, the company also secured a credit approved term sheet for a further $10 million with majority shareholder, Alceon.

FY21 outlook

Following the positive post Easter and Mother's Day trading period, Mosaic anticipates a continued rebound in customers. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is projected to be around $48 million. This is provided that there are no significant changes in the current operating environment such as government mandated lockdowns.

Looking further ahead, the group is forecasting an improved EBITDA for FY22 due to its more efficient business model. In the next financial year (FY22), underlying EBITDA is assumed to be roughly $50 million.

EziBuy acquisition update

Mosaic noted that it has renegotiated the terms to extend the Option expiry date until 30 September 2021. This is 3 months longer than the original date, with the company also postponing the payment terms until 31 December 2021.

Should the deal go through, Mosaic's digital revenue is estimated to be over $200 million, or 30% of its total income. EziBuy is forecasted to deliver a normalised EBITDA of about NZ$2.5 million in FY21, rising to NZ$5 million in FY22. This is before processes are fully integrated with Mosaic operations.

What did the CEO say?

Mosaic CEO Scott Evans touched on the company's progress, saying:

After the toughest 18 months imaginable including the bushfires and COVID-19 pandemic, we are confident that Mosaic Brands has come through stronger and better with a very clear path to returning to our year-on-year track record of profitability and growth.

Aligned with the vaccine roll-out, since Easter, every week sees more and more of our customers heading back into store. Encouragingly even with the gradual return to normalised shopping behaviour, our online sales continue to perform well and grow

Despite today's gain, the Mosaic share price is down more than 20% for the past 12 months.

The post Mosaic Brands (ASX:MOZ) share price rockets 21% on business update appeared first on The Motley Fool Australia.

After gradually lifting 1.02% to 99 cents a share through the morning, the Mosaic Brands share price took a sudden plunge at midday, dropping 8.6% to 90 cents at the time of writing.

Mosaic Brands (formerly known as Noni B) is the ASX retail company behind famous Aussie retailing brands like Noni B, Rivers, Beme, Millers and Autograph. The company has close to 1,400 stores around the country.

The company has had a rough trot over the past few years, falling from a high of around $3.70 a share back in late 2018 to less than a dollar today. Even so, Mosaic shares are up around 326% from the lows we saw back in March 2020.

What's driving the Mosaic Brands share price today?

Mosaic announced a bit of a mixed bag today. The company reported that revenues came in at $299.1 million, down 29% from $414.1 million for the prior corresponding period (1H20). That was despite Mosaic's online sales surging 27% year on year, rising from $41.1 million to $52.3 million. That represents a 17% share of overall revenues, rising from 10% in 1H20. Group margins also improved by 3% to 61%.

Despite that heavy drop in revenues, Mosaic reported an increase in earnings before interest, tax, depreciation and amortisation (EBITDA) of 38%, going from $32.7 million in 1H20 to $45.1 million in 1H21. However (as the company noted), this growth in EBITDA was massively assisted by JobKeeper payments from the federal government over the period. Mosaic said 'normalised EBITDA', which assumes no COVID-19 lockdowns and no JobKeeper, would have been $17.32 million.

The company also reports that its net cash position has increased by 1,109% to $65.3 million from the $5.4 million of the prior corresponding period.

Mosaic will not be paying a dividend for the half, in order to "preserve cash". The company has not paid a dividend since 2019.

Outlook for 2021 and beyond

Mosaic Brands CEO Scott Evans had this to say on the results:

The result was driven by a number of initiatives to reset the group for a post-COVID economy, including a continued focus on margin growth…

Whilst JobKeeper was an invaluable element in managing through the last 10 months, having now ended, Mosaic has transitioned through its toughest ever trading period, strengthened its balance sheet and returned to its track-record of profitability.

Given the unique demographic of our customers, we did not see, nor expect, a short term stimulus sugar hit to sales. However, conversely we are now planning for a longer-term sustainable lift in sales due to post-vaccine tailwinds as many of those same customers emerge from hibernation.

The post Mosaic Brands (ASX:MOZ) share price plummets 8%. Here's why appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping lower:

Afterpay Ltd (ASX: APT)

The Afterpay share price is down 5% to $141.85. This appears to have been driven by profit taking from investors after some stellar gains recently. In fact, at one stage today the Afterpay share price hit a record high of $151.22. When the payments company's shares hit that level, it meant they were up a massive 37% since last Wednesday. A bullish broker note and Affirm's successful IPO in the US have helped drive Afterpay's shares higher this month.

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price has fallen a further 1% to $2.35. Investors have been selling this waste management company's shares this week following the resignation of its CEO. In response to this surprising news, Credit Suisse downgraded the company's shares to a neutral rating with a $2.45 price target.

Mosaic Brands Ltd (ASX: MOZ)

The Mosaic Brands share price has crashed 11% lower to $1.03. This decline appears to be due to profit taking from some investors after a significant jump in the fashion retailer's share price on Thursday. The Mosaic Brands share price rocketed 32% higher yesterday after revealing that its performance had improved greatly.

Perpetual Limited (ASX: PPT)

The Perpetual share price is down almost 3.5% to $34.69 following the release of a trading update. According to the release, Perpetual's total assets under management (AUM) came in at $89.2 billion at the end of the second quarter. This includes AUM from the Barrow Hanley acquisition on 18 November 2020. Perpetual Asset Management Australia's AUM fell 2% to $22.7 billion.

The post Why Afterpay, Cleanaway, Mosaic Brands, & Perpetual shares are dropping lower appeared first on The Motley Fool Australia.

Some profit taking has, however, since led the company's shares to retreat to $1.08 (at the time of writing), up 22.73% for the day so far.

What's driving the Mosaic share price?

The Mosaic share price is shooting the lights out today after the clothing retailer advised it has returned to a path of profitability following a robust performance for the first half of FY21.

For the period ending 27 December, Mosaic delivered online sales growth of 31% on the prior corresponding period. This was attributed to the company seeing its largest ever lift in online trading over the Black Friday event. Sales jumped up by 100% compared to last year's annual shopping day. Mosaic also reported it now offers more than 350,000 products online compared with 250,000 three months prior.

A strong Christmas trading period also followed the Black Friday event, leading the company to remain resilient despite COVID-19 renewed fears. While December sales were 4% lower than the  prior comparative term, Mosaic advised that its ongoing focus on improving margins resulted in only a 5.6% margin drop for the entire first half, when compared to the same time last year.

As a result of the improvement in trading conditions, the company expects earnings before interest, tax, depreciation and amortisation (EBITDA) to exceed market forecasts. It revealed that EBITDA is likely to come in between $40 million and $45 million, reflecting a 22% to 38% increase over the first half of FY20.

Mosaic highlighted that at the end of the calendar year, it had a healthy net cash balance of $65 million. This represents a huge uptick on the previous $4.5 million registered on the company's books last December and is likely helping to drive the Mosaic share price higher today. 

What did the CEO say?

Mosaic CEO Mr Scott Evans hailed the favourable result, saying:

As stated in 2020 we are seeing profound and permanent shifts in the retail sector. We have moved swiftly to embrace this by realigning our rental costs, store footprint and rapidly building our online offer.

Mosaic share price in review

The Mosaic share price has been on the road to recovery over the last nine months. In March, Mosaic shares fell to an all-time low of 19.5 cents, after reaching as high as $1.84 in February.

Based on the current Mosaic share price, the company commands a market capitalisation of around $85 million.

The post Why the Mosaic (ASX:MOZ) share price is rocketing 23% today appeared first on The Motley Fool Australia.

Myer Holdings Ltd (ASX: MYR), Premier Investments Limited (ASX: PMV) and Mosaic Brands Ltd (ASX: MOZ) were also named in an Oxfam report as the worst-rated companies for transparency of supply chains.

According to the report titled Shopping for a Bargain, all three ASX businesses continued to hide their supplier factory names and locations to avoid scrutiny. 

All three refuse to make a "credible, public commitment" to paying living wages to factory workers.

Twelve major retailers have over the years publicly made a promise to Oxfam that factory workers, who are mostly women living in poverty, would be paid enough to cover basic essentials.

The Motley Fool has contacted Myer and Premier Investments for comment.

Mosaic Brands head of compliance, Nic Williams, denied the company refused to participate in the study, saying it offered to "provide the information we could within the bounds of our commercial relationships".

"Mosaic Brands requires independent and valid audits of all our factory suppliers," he told The Motley Fool.

"Audit requirements that align with our commitments to the ETI Basecode, which includes employment practices, working conditions, and wages and many other factors." 

COVID-19 devastated the people who make our clothes

The report depicted alleged abuse of third-world suppliers by Australian fashion retailers this year when COVID-19 struck.

"Practically overnight, major global fashion retailers that have profited for decades from paying poverty wages to workers in countries with little social protection and lax labour laws, cancelled orders and delayed or cancelled payments to their suppliers, many demanding discounts on work already completed," Oxfam stated.

"In response, factory owners stood down hundreds of thousands of garment workers — approximately 80% of whom are women — without pay, leaving the people who make our clothes without any income, facing a global pandemic in extreme poverty."

Some retailers backed down after public outcry from customers and suppliers, and have since paid for orders placed before the pandemic.

But the initial response demonstrates how Australian retailers can use their power to devastate people already living in abject poverty, stated the report.

The study was the first detailed inquiry into the supply chains of ten fashion chains operating in Australia with factories in Bangladesh:

• Best & Less (owned by Pepkor Holdings Ltd (JSE: PPH))
• Big W (Woolworths Group Ltd (ASX: WOW))
• Cotton On
• H & M Hennes & Mauritz AB (STO: HM-B) 
• Zara (Industria de Diseno Textil SA (BME: ITX))
• The Just Group (Premier Investments) 
• Kmart (Wesfarmers Ltd (ASX: WES))
• Myer
• Noni B (Mosaic Brands) 
• Target Australia (Wesfarmers)

All the companies aside from Myer, Premier and Mosaic had made commitments to pay factory workers a living wage.

Williams said the study was not "an accurate picture" of how Australian retailers operate in Bangladesh.

"The report does not state how many Mosaic suppliers were interviewed and does not reflect the extensive safety and wage auditing processes we have in place in Bangladesh and globally."

Australians have massive impact on poverty

Oxfam Australia Chief Executive, Lyn Morgain, said purchasing practices heavily favouring Australian retailers forces third-world factories into poor conditions.

"These poor purchasing practices of brands are making it impossible for factories to increase wages, despite many of the same brands making public commitments to ensure the payment of living wages," she said.

"Instead, wages are trapping workers – mainly women – and their families in a cycle of poverty."

The study was conducted with Monash University and University of Liberal Arts Bangladesh. It interviewed both retailers and suppliers for their thoughts.

Not surprisingly, the retailers always rated themselves better than what the factories did.

"This may indicate the brands' failure to fully understand the impact of their purchasing decisions on the factories and the workers in their supply chains."

Expensive clothing doesn't always equate to fair working conditions, according to the report.

"Clothing production for some of the world's most luxurious brands is carried out at factories which pay some of the poorest wages."

Morgain also called on customers to do their part to pressure retailers into doing the right thing.

"With just one month today until Christmas, shoppers should demand big brands end this cycle and do better in the way they do business… giving real meaning to their commitments to end poverty wages for the women making our clothes."

The post 3 ASX companies named and shamed as worst in industry appeared first on The Motley Fool Australia.

Good news for the Mosaic share price?

Mosaic Brands is one of the largest fashion retail groups in Australia and New Zealand. It holds such brands such as W.Lane, Katies, Rockmans, Crossroads, and Rivers, as well as 50.1% of EziBuy.

FY20 broke four consecutive years of growth and profitability. Not a great start. However, Mosaic is in a discretionary retail sector, which took much of the brunt of the COVID-19 lockdowns nationwide. Given the year everyone has lived through, the company acknowledged the performance slump was inevitable. It was impacted by bushfires, lockdowns, the shift to online shopping and a rental spat with shopping centre landlord Scentre Group (ASX: SCG).

Since the start of the year, the Mosaic share price is down by 71%.

In particular, the company believes the shift to online shopping is both structural and permanent. Chairman Richard Facioni told shareholders:

The online shift is permanent, which has implications for the physical retail footprint and unrealistic rent expectations from landlords.

Stores are and will always remain a central part of Mosaic Brands and serving our customers. But not at the cost of unrealistic rents, nor landlord expectations that pre-date the internet.

In August we informed the market that up to 500 of our 1300 plus store portfolio nationally could be closed if realistic rental agreements were not struck.

The move online

Across FY20 the company recorded a 15% increase in online sales to just under $100 million. In the first quarter of FY21 it has already increased further by 31%. While the lock down situation in Victoria likely contributed, the company has no doubt that online sales will be more important than at any time previously.

The company has also reduced inventory by 50% in a change to operating practices. This, combined with reduced discounting and online sales has allowed it to increase margins to 67%. Up from 61.8% for the previous corresponding period (pcp). Moreover, the Mosaic Brands has decided to delay its planned acquisition of the other 50% of EzyBuy by 6 months in an effort to conserve cash. 

Foolish takeaway

The challenge of whether online sales volumes will remain permanent is an area of some debate. Nonetheless, Mosaic has already delivered a large scale increase in online sales with most of the country out of lockdown. The decision to close 250 stores seems to be recognition of this, and a tough line on costs and margin preservation. Investors appear to be happy with this prudential approach, driving the Mosaic share price upwards since yesterday.

The post The Mosaic (ASX:MOZ) share price comes alive, up 5% appeared first on The Motley Fool Australia.

Here are some of the highlights from the ASX today:

Scentre Group (ASX: SCG) and Mosaic Brands Ltd (ASX: MOZ)

The Scentre share price went up by 5.4% today and the Mosaic Brands share price grew by 17.7%.

Mosaic announced that after successful negotiations with Scentre, all non-Victorian stores in Westfield shopping centres have now reopened.

But the commercial terms of the agreement remain confidential. Victorian stores remain closed because of stage 3 and stage 4 restrictions.

Mosaic will continue to negotiate with landlords nationally to achieve "commercially sound lease terms consistent with the fundamental shift the Group sees in the retail rental market".

The retail company will seek to minimise future store closures, but it still anticipates closing 300 to 500 stores over the next 12 months to two years.

Mosaic chair Richard Facioni said: "We're pleased to have reopened our Westfield stores over the weekend following a mutually agreeable outcome to our negotiations with Scentre Group.

"We have had a long-standing relationship with Westfield enabling us to reach a solution that worked for both parties. This is a good outcome for Mosaic and, in particular, the 400 affected team members. As we noted last week, shuttered stores work for no one."

IOOF Holdings Limited (ASX: IFL)

IOOF announced its FY20 result and a large acquisition today.

Underlying net profit after tax (UNPAT) was down 34.9% to $128.8 million. UNPAT from continuing operations fell 32.3% to $124 million.

Statutory net profit after tax rose 414.6% to $147 million. Total funds under management, administration and advice (FUMA) grew 46% to $202.3 billion.

The diversified ASX 200 financial business declared a final dividend of 11.5 cents per share.

IOOF also announced that it's going to acquire MLC from National Australia Bank Ltd (ASX: NAB) for $1.44 billion. The acquisition is expected to deliver more than 20% of earnings per share (EPS) accretion on an FY21 pro forma basis including $150 million of targeted pre-tax synergies, excluding transaction and integration costs.

The acquisition price of $1.44 billion represents 7.4 times pro forma UNPAT including the targeted synergies, though it's 16.2 times pro forma UNPAT excluding synergies.

If the acquisition goes ahead IOOF will be the number one retail wealth manager by FUMA with $510 billion and the number one advice business by the number of advisers with 1,884 advisers.

IOOF CEO Renato Mota said: "The opportunity to acquire a highly complementary business of the quality and size of MLC is compelling. MLC is a natural fit with IOOF and presents a unique opportunity to create value from synergies for the benefit of clients, members and shareholders. This is a once in a generation opportunity to create the leading wealth manager of the future."

AGL Energy Ltd (ASX: AGL)

ASX 200 business AGL has announced it has entered into a binding agreement to acquire Click Energy from Amaysim Australia Ltd (ASX: AYS). The acquisition price is $115 million.

The acquisition includes 215,000 energy service customers and increases AGL's total services provided to 4.2 million services. It's aiming for 4.5 million customer services by 2024.

AGL said that its cost to serve is below that of Click Energy's and that means AGL believes it can help Click Energy's lower its cost base. Around 97% of Click Energy customers already use online billing, so AGL believes it can improve their service after its investments in its digital customer service.

AGL expects the acquisition to be "modestly accretive" to AGL's underlying earnings. The acquisition will be financed from AGL's existing debt facilities.

There will be approximately $40 million of transaction and integration costs. The ASX 200 company will recognise this as a significant item in FY21.

The post ASX 200 drops 0.2%, Scentre soars appeared first on The Motley Fool Australia.

Mosaic's huge daily share price gain follows an ASX announcement this morning that it had reached successful lease negotiations with Scentre Group (ASX: SCG). Scentre's share price is up 3.2% at time of writing.

Despite the welcome boost, the fashion retailer has a long way to go before recouping all of its 2020 share price losses. As you'd expect, the COVID-19 pandemic is to blame, crashing the Mosaic Brands share price down 65% from 16 February to 24 March.

After today's strong rally, however, Mosaic's share price is now up 56% from the March low.

Mosaic Brands – formerly Noni B Limited – is the largest specialty fashion retailer group in Australia. Brands include Noni B, Millers, Rockmans, Katies, Rivers, Autograph, Crossroads and Beme, among others. Mosaic's shares began trading on the ASX in 2000 and the company now almost 1,400 stores across Australia.

Why is the Mosaic Brands share price surging?

Like the majority of retailers across Australia, and indeed the globe, Mosaic Brands has taken a big revenue hit from store closures and social distancing measures during the coronavirus pandemic.

Mosaic has been negotiating rental terms with landlord Scentre Group. This morning, it announced that after reaching a successful outcome in negotiations, all of its stores in Westfield shopping centres have reopened, with the exception of Victoria. Mosaic's stores in Victoria are still closed until the stage 3 and 4 restrictions are lifted.

Mosaic Brands chair Richard Facioni said:

We're pleased to have reopened our Westfield stores over the weekend following a mutually agreeable outcome to our negotiations with Scentre Group. Our Victorian stores remain temporarily closed for health and safety reasons. We look forward to reopening those stores as soon as it is safe for our team and customers to do so.

We have had a long-standing relationship with Westfield, enabling us to reach a solution that worked for both parties. This is a good outcome for Mosaic and, in particular, the 400 affected team members. As we noted last week, shuttered stores work for no one.

The commercial terms of the new agreement with Scentre remain confidential.

Mosaic is continuing to negotiate with landlords across Australia for viable lease terms that take into account the viral-induced shift the company has experienced in the retail rental market. Mosaic is working to minimise future store closings, but still foresees the potential shuttering of 300-500 of its stores over the next 1-2 years.

After today's surge, Mosaic's share price will be one to watch heading into September.

The post The Mosaic Brands share price surges 21% on lease deal appeared first on The Motley Fool Australia.

FY20 results

Mosaic Brands announced an underlying loss before interest, tax, depreciation and amortisation (EBTIDA) of $45.8 million for FY20. It includes a provision for occupancy costs of $49 million. This could be lower as negotiations with landlords are ongoing.

The result is before a non-cash impairment of $113.5 million relating to brand names, goodwill and right of use assets.

Additionally, earnings have been materially impacted by the recent bushfires and the coronavirus pandemic. 

However, Mosaic Brands is experiencing strong and accelerating online digital department store sales of $93.7 million. In 2H20, online sales growth was 35.9% and this trend continued into July with 40% sales growth. 

What does this mean for the retail rental market

Mosaic Brands CEO Scott Evans said Australia's retail rental market had not just been paused because of the pandemic – it was "fundamentally changed". He went on to say:

Some, though not all, landlords accept that reality, so while exact locations and numbers are to be determined, the Group anticipates potentially 300-500 store closures over the coming 12-24 months. Shuttered stores work for no one so we aim to minimise closures, but not on uncommercial terms.

The FY20 results follow reports of Scentre Group's (ASX: SCG) Westfield locking out Noni B stores due to an ongoing rent dispute induced by the coronavirus pandemic. 

As a result, Mosaic Brands is continuing its online strategy by investing in its online digital department store strategy which saw growth in total digital sales to $93.7 million. 

Additionally, Mosaic's acquisition of a 50.1% interest in Ezibuy has made progress in its turnaround plans including reducing costs and improving inventory. It will review options regarding the remaining 49.9% over the coming months due to the strategic benefits it brings.

Outlook for the Mosaic share price

Traffic and sales in July 2020 remain substantially below the prior year. However, recent actions and focus on margin have delivered comparable store margin growth for the month. Additionally, a further $18 million in savings is expected to be realised, net of Jobkeeper benefits. 

Despite the challenges, the company has remained optimistic with the group positioned to return to sustainable profitability in FY21, subject to no more material disruptions caused by the pandemic. This return will hopefully be reflected in the Mosaic share price, which has a long way to climb after today's crash. The Mosaic share price is trading at 0.54 cents at the time of writing, a 19.85% decline.

Understandly, the board has decided not to declare a dividend for the financial year.

The post Mosaic Brands share price crashes on FY20 results appeared first on The Motley Fool Australia.

City Chic Collective Ltd (ASX: CCX)

The City Chic share price is up 281% from its March low to $3.05, 14% below its $3.58 year high. The share price recovery saw City Chic joining the S&P/ASX 300 (ASX: XKO) last week. The plus-size clothing retailer closed Australian and New Zealand stores during the height of the coronavirus pandemic but has since reopened. During closures, City Chic benefitted from its high proportion of online sales, which account for two-thirds of global sales. Despite online already accounting for a large part of the business, Australian and New Zealand saw online sales growth of 57% during the store closure period.

City Chic quickly adjusted its product mix to better suit customer needs, recording strong buying of intimates, casual, and streetwear which has offset weakened demand for higher-end dressing. Increased promotions have been used to manage cashflows and inventory during the period of uncertainty, which means online gross margins have been lower. Positively, the company has finalised negotiations with landlords, agreeing to reduced rents during store closures and market appropriate rents going forward. Through agreements unable to be reached on post-COVID rents, 14 stores will close. The impact of these store closures is expected to be minimal as customers are directed to nearby stores and the online channel.

Mosaic Brands Ltd (ASX: MOZ)

The Mosaic Brands share price has gained 230% from its March low of 23 cents. The company is currently trading at 76 cents. Although this is an impressive gain, Mosaic Brands' shares are still trading well below last year's high of $3.06. The company closed stores in March but re-opened from mid-May. Through substantial work to accelerate the company's digital offering during store closures, online sales increased by 80%. The company added more than 100,000 SKU's and 20 categories during this period.

The ASX fashion retailer expects a FY20 EBITDA loss as a result of store closures and foot traffic declines. Mosaic expects second-half EBITDA loss to exceed the first-half of $32.7 million. The company cancelled its interim dividend following its earlier deferral announcement. Nonetheless, management expects the pandemic's impact on its performance to be short-term, with a return to profit anticipated in FY21.

The post ASX fashion retailers bounce back appeared first on The Motley Fool Australia.