Quiz warns on full year revenue following dip in sales
Fashion retailer Quiz has seen its first half revenue decline by 14% to £42.3 million after cost of living pressures impacted demand for its dressy occasionwear.
In the six months to 30 September, revenue in the retailer’s UK stores and concessions fell by 11% to £22 million while online sales dropped by 22% to £12.6 million. International revenue was also down, falling by 11%.
Meanwhile, Quiz posted a pre-tax loss of £1.5 million compared to a profit of £1.8 million a year earlier.
Tarak Ramzan, founder and chief executive of Quiz, said: “This has been a challenging period for many retailers, and we have not been immune to the widely publicized macro headwinds impacting consumer demand. Notwithstanding the ongoing pressure on consumers, we have continued to focus on taking the right decisions for our long-term future, including prioritising protecting full-price sales and carefully managing our store portfolio.”
During the period, Quiz opened three stores, relocated two and closed two to take the total to 64 in the UK and five in Ireland.
Giving an update on more recent trading, Quiz said sales for the two months to 30 November were £14.1 million compared to £16 million at the same time last year. It now anticipates that full year revenues will be approximately 6% to 8% lower than current market expectations.
As a result of the half year performance, Quiz has announced that it will conduct a strategic review which will be led by Peter Cowgill, its independent chairman. The findings are expected to be announced in the first quarter of 2024.
Ramzan added: “I remain confident that Quiz remains a strong, distinctive brand known for providing glamorous looks at good value prices. However, given the prolonged period of challenging trading we believe it is prudent to examine a range of options to maximise shareholder value.”