In a challenging retail landscape, Quiz discloses H1 results reflecting a downturn in sales and profits for the six months ending September. Despite short-term uncertainties, Quiz maintains confidence in its long-term potential. Group revenue contracts to £42.3 million from £49.4 million, with EBITDA sliding to £1.1 million from £3.7 million YoY. The company reports a pre-tax loss of £1.5 million compared to a £1.8 million profit in the previous period.
UK store and concession revenues experience an 11% dip to £22 million, while online revenues decrease by 22% to £12.6 million. International revenues witness an 11% decline, totaling £7.7 million. Gross margin edges up to 61.8% from 61.6%, showcasing the company’s commitment to full-price sell-through. Quiz opens three stores, relocates two, and closes two during this period, maintaining a total estate of 64 in the UK and five in the Republic of Ireland.
Despite the challenging short-term outlook, with November sales at £14.1 million, down from £16 million YoY, Quiz anticipates a robust Christmas trading period. However, it expects full-year revenues to be 6% to 8% below current market expectations. The company remains optimistic about its future, citing a differentiated brand and a relevant omnichannel business model.
Founder and CEO Tarak Ramzan acknowledges the tough retail landscape, expressing confidence in Quiz’s resilience. In response to the trading performance, the board initiates a comprehensive strategic review led by independent chairman Peter Cowgill. The outcome of this review is expected to be announced in Q1 next year.
Ramzan states, “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 maximize shareholder value.”