Mosaic profits soared 23 per cent to £31.5 million in the year to July 28, with total sales hitting £407 million.

The results come a year after the Baugur-owned fashion group added Principles and Warehouse to its stable.

The acquisitions delivered mixed results in the first half, with Warehouse sales increasing 17 per cent, but Principles posting a slide of 9 per cent.

Mosaic chairman Derek Lovelock described the Principles results as a “concern”. He added: “The first few weeks of the autumn/winter season have seen challenging trading conditions.”

Increasing speculation that Baugur is poised to make a move on US department store Saks was fuelled as the US firm’s shares jumped this week. It is thought that if the Icelandic giant bought Saks, it could act as a platform to introduce Mosaic brands into theUSmarket.

Former UK Inditex managing director Mike Shearwood joined Mosaic last month and will be responsible for the Principles, Warehouse and Oasis brands.

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