Setback after chain's troubles
Quiz takes £400,000 hit from House of Fraser crisis
Quiz: performing well
Quiz Clothing, the Glasgow-based fashion brand, has suffered a £400,000 hit from the crisis at House of Fraser.
Peter Cowgill, chairman of Quiz, will reveal the impact of the department store chain’s troubles when he addresses shareholders at today’s annual meeting.
Quiz has operated 11 House of Fraser concessions and sold its products through the House of Fraser website.
Mr Cowgill will tell investors: “Further to House of Fraser’s entry into administration and the selective acquisition of assets by Sports Direct International plc, the group is expecting to provide £0.4 million in the six months to 30 September 2018 in relation to outstanding debtor balances and other potential costs.”
He will add that despite this setback the board is pleased with the group’s performance during the half year which shows continued growth across each of its channels.
“The board is also particularly pleased with the positive customer response to Quiz’s product range over the summer,” he will say.
“We continue to focus on maximising the Quiz brand’s online potential by investing in our websites’ and apps’ on-going development as well as effective marketing activity.
“In line with our strategy and as anticipated, we are now generating stronger growth through Quiz’s own websites compared to third-party websites, which experienced exceptional growth last year following the launch of partnerships with Zalando and Next.
“Our UK stores and concessions have performed well during the year to date despite the previously reported softening of footfall during April. “
The company has opened two new standalone stores during the period (Bluewater shopping centre in Kent and Oxford). One store closed during the period.
The international business has continued to grow and develop in line with expectations.
Mr Cowgill added: “Despite an uncertain trading environment, we believe that the Group, underpinned by the strength of the Quiz brand as well as its flexible, omni-channel model, remains well positioned for continued strong growth.
“At this stage, and with important trading periods in the second half of the financial year still to come, the board remains confident that Quiz is on track to deliver market expectations for the full year.”
The group will provide a Trading Update with regards to the six months to 30 September 2018 on 11 October and will announce its interim results during late November.