Quiz Clothing finds answers to growth in sales
Fashion brand Quiz Clothing showed a strong return to growth after posting an £800,000 underlying profit for the year to the end of March following a £9.6m loss in the previous 12 months.
Group revenue increased 97% year on year to £78.4m (2021: £39.7m) following the removal of social restrictions.
Higher levels of full price sales resulted in an increase to the gross margin at 60.3%, consistent with the gross margin generated in the year prior to the pandemic, from 53.4% in FY 2021.
Online sales grew 66% through QUIZ’s own website.
Active customers increased 74% on the prior financial year in line with demand for the company’s core occasion wear offering. International revenue almost doubled.
Revenues in the three months to 30 June 2022 increased 62% on the prior year and were consistent with the levels generated prior to the COVID-19 disruption on a like-for-like basis
The company said there is potential for sales later in the year to be impacted by the effect of the inflationary environment and increases in the cost of living on consumer confidence.
The board is not recommending the payment of a final dividend (2021: £nil).
Matthew Webb, analyst at Panmure Gordon said: ” In our view this performance, and specifically the return of the shops to profitability under their new rental terms, vindicates the strategic decisions to continue with the omnichannel model and focus on its own website and stores.
“The balance sheet position has been stabilised and its bank facilities renewed. Although QUIZ unsurprisingly notes the challenging environment, we see this as a reassuring statement.”