Quiz Clothing's group revenues fell by 14% in the six months to 20 September 2023., which the retailer attributed to challenging prior-year comparatives and inflationary pressures that impacted consumer demand during the financial year.
Sales in the brand's UK stores and concessions dropped by 10.6% to £22m, while e-commerce sales saw a decrease of 21.7% to £12.6m. In the international business, sales fell by 11.5% to £7.7m.
The retailer has announced that it will be examining "strategic options" under the leadership of their chairman, Cowgill, to optimise shareholder value, with the results of this review will be presented at the beginning of next year.
Tarak Ramzan, founder and chief executive added: “This has been a challenging period for many retailers, and we have not been immune to the widely publicised macro headwinds impacting consumer demand.
“Notwithstanding the ongoing pressure on consumers, we have continued to focus on making the right decisions for our long-term future, including prioritising protecting full-price sales and carefully managing our store portfolio.”
Key results from Quiz H1 period:
- Net sales fell 14% to £42.3bn
- EBITDA dropped to £1.1m from £3.7m the year before
- Operating losses of £1.3m were incurred
The board remains confident in Quiz's differentiated brand and relevant omni-channel business model.
Despite the upcoming crucial Christmas trading and January sales periods for Quiz, the board expects revenue to be 6-8% lower than the £86.4m predicted in the year ending 31 March 2024.
This expectation takes into account the recent decline in demand and the possibility of ongoing macroeconomic pressures affecting consumer demand.
“I remain confident that Quiz remains a strong, distinctive brand known for providing glamorous looks at good value prices,” said Ramzan. “However, given the prolonged period of challenging trading, we believe it is prudent to examine a range of options to maximise shareholder value.”
