Baugur's fashion brands report losses

Mosaic Fashions, the group of clothing brands controlled by Iceland's Baugur, reported a full-year loss, but the group said its cash position remained strong and it expected to return to profit next year.

“It was a tough year and overshadowing all of these results the assimilation of the Rubicon brands,” said Derek Lovelock, chief executive of Mosaic. Principles, Warehouse and Studio - collectively forming Rubicon - were acquired by Mosaic in 2006. Sales at the enlarged group, which includes brands such as Karen Millen and Coast, rose 49 per cent in the year to January 26, while earnings before interest, tax, depreciation and amortisation dipped slightly to £71.9m ($143m) from £72.2m.