Womenswear retailer Mosaic Brands says it’s in good shape after closing loss-making stores, slashing inventories and cutting costs and won’t need wage subsidies to underpin future profit growth.

Mosaic, which owns brands including Katies, Millers, Rivers and Noni B, returned to profit growth in the December-half after receiving $83 million in subsidies from the Australian and New Zealand governments and slashing its wages bill by almost 60 per cent.