‘Not quite Armageddon’: Bright spots amid dire retail predictions

The boss of Rivers and Katies operator Mosaic Brands says the fashion retailer is well placed to weather the storm of cost of living pressures as the group’s core customer base is still spending.

Mosaic shares accelerated by more than 50 per cent during Friday’s session and closed 19 per cent stronger after the company confirmed it was set to swing back to profit for 2023 after posting a $16 million earnings loss last year.

Chief executive Scott Evans said while the business had been hit hard over the past few years as foot traffic to stores evaporated thanks to COVID-19, the company’s core customer base was not the most exposed to cost pressures in the current environment.

“It [COVID-19] played out for us pretty badly over the past few years, but as you come out of that and into a high-rate environment, many [of our customers] have little mortgages, or no mortgages,” he said.

Evans said there was no doubt that spending was slowing, but soaring business costs seen in the COVID era had also started to decline.

“Do we think that the next six months is going to be all wonderful? No. Do we think it’s Armageddon? Not quite,” he said.

‘Clearly, over-50 consumers have become more cautious in the last six months, but they are still spending.’

Scott Evans, Mosaic Brands chief executive

Mosaic Brands told investors in its market update on Friday that while rising interest rates had affected consumer appetite, the shoppers who typically frequent the company’s brands were continuing to spend online and in-store.

“Clearly, over-50 consumers have become more cautious in the last six months, but they are still
spending,” Evans said.