Quiz chair to review options after group posts loss
Quiz Clothing chairman Peter Cowgill will lead a review of the Glasgow fashion group’s options after it slid to a £1.5 million half-year loss.
Inflationary pressures were a major factor in the decline and the company announced that it expects revenue to be 6-8% lower than the £86.4m predicted in the year ending 31 March 2024. Shares closed down 0.95p or 13.62% at 6p.
The board said it remains confident that Quiz’s brand is differentiated, and the group’s omni-channel business model remains relevant.
“However, given the group’s recent trading performance, the board has decided to immediately initiate a thorough review of the strategic options available to the group to maximise shareholder value.
“This process is being led by the company’s independent chairman, Peter Cowgill, supported by the company’s retained advisor, Panmure Gordon.” Quiz said the results of the review will be announced in Q1 2024.
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 taking the right decisions for our long-term future, including prioritising protecting full-price sales and carefully managing our store portfolio.
“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 maximise shareholder value.”
Group revenues for the six months to the end of September fell 14% to £42.3m (H1 2023: £49.4m) reflecting challenging prior year comparatives as well as inflationary pressures impacting consumer demand. The loss compared to a £1.8m profit last time.
The board said that “widely reported cost of living and inflationary pressures have impacted customer demand during the financial year. As a result, the near-term outlook is difficult to predict for many UK retailers including QUIZ.”
Sales for the two months to 30 November 2023, including the Black Friday sales period, totalled £14.1m (2023: £16.0m), behind management expectations.
UK store and concession revenues decreased 11% to £22.0m (H1 2023: £24.6m)
Online revenues decreased 22% to £12.6m (H1 2023: £16.1m)
International revenues1 decreased 11% to £7.7m (H1 2023: £8.7m.