Quiz posts drop in full year sales as losses widen
Fashion retailer Quiz has seen its full year group revenue decline by 66% to £39.7 million after it bore the impact of enforced store closures and fewer customers buying occasion wear during the Covid-19 pandemic.
In the year to 31 March, the retailer reported an underlying pre-tax loss of £9.6 million compared to a loss of £3.1 million in the previous year.
Responding to the challenges of the coronavirus pandemic, Quiz restructured its store portfolio in June 2020, following which 66 of the retailer’s previous 82 stores have now reopened. The retailer said the new lease arrangements have an average lease term of 24 months with charges mainly linked to revenues generated.
In addition, Quiz has reduced its dependence on third party concessions and websites as it looks to generate more revenues from its own stores and online platform.
Tarak Ramzan, founder and chief executive of Quiz, said: “Against a backdrop of highly challenging trading conditions during the year, including the enforced closures of stores and concessions for substantial periods and the cancellation of social events that are a key driver for demand of Quiz’s trademark occasion wear, we have taken decisive actions to position the business to return to long-term profitable growth, including reducing the size of our store estate, decreasing costs, and maintaining very tight cash management.”
Quiz has seen a gradual improvement in sales since the removal of Covid-19 related restrictions with its performance now approaching pre-pandemic levels on a like-for-like basis. As a result, sales have reached £30.6 million since the period end, which is £17.4 million more than the same period last year.
Ramzan added: “We have continued to invest in our own ecommerce channels as we optimise our omni-channel model. We remain confident in the strength and appeal of Quiz as an occasion wear led brand, as has been evidenced by the increase in demand and positive trends across our operational KPIs as social events returned during the summer. This continues to underpin the Board’s confidence in our ability to continue to improve performance and achieve profitable growth as more normal trading patterns return.”
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