Quiz sales come in below management expectations
Quiz has warned that it may report a full-year loss after inflationary cost pressures impacted consumer confidence and demand for its dressy occasion wear.
The retailer said sales were below management expectations in the five months to 31 August with a decline of 15.3% to £37 million,
Store sales fell by 11.5% in the period due to reduced footfall compared to the same time in the previous year. Meanwhile, online sales dropped by 23.8% following a decline in web traffic and an increase in return rates year-on-year.
Should the current trend in revenues continue during the second half of its financial year, Quiz said its full-year revenue would come in around 6 to 7% lower than current market expectations. This would also mean that it would expect to report a pre-tax loss for the year of “no more than” £1.5 million.
Quiz said: “Whilst the impact of cost of living pressures on consumers’ disposable income persists, management continues to retain a tight control on costs and is proactively reviewing all aspects of the business to mitigate the impact of the current economic and trading environment on the Group and identify potential strategies to drive additional revenue growth.
“Longer-term, the board remains confident that Quiz’s product proposition and commitment to providing glamorous looks at value prices will continue to appeal.”
