A few observations: Growth against 1H LY is meaningless given lockdowns. MOZ says: "While not yet at pre-pandemic levels, instore shopping continues to lift", whereas Myer reports: "In comparison to corresponding prior periods not affected by COVID, total sales were up 18.9% vs 1H20, and up 14.3% vs 1H19". The woeful performance of Ezibuy is a disgrace. That business was bought from a related party for $11m. The board should hang their heads in shame on that one. Oh-some of them represent the related party, so that's OK. Flat online sales excluding Ezibuy suggests that the peak of online shopping has passed. The net cash position is meaningless without a balance sheet that shows the level of payables. It's easy to report an improvement in the cash position if you don't pay the bills. The plan to open 130 additional stores in the year is another piece of strategic bluster. It doesn't pass the sniff test. It's 2.5 stores per week. Which brands? Why the 180 degree turn when the strategy has been to close stores and brag about the short lease terms? Where's the capital coming from? Landlords can and do pay for fit-outs, but given that MOZ has negative equity, would any landlord take that risk? 130 more stock locations, so inventory will likely rise, putting more pressure on the financing. New blood on the board is a good thing. Time will tell what it leads to. Wait for the detail. Until then the overhang of dilution from the notes will likely depress the share price.
MOZ Price at posting:
27.5¢ Sentiment: None Disclosure: Not Held
