Quiz swings to £5.2m loss as cost-of-living crisis hits sales
Following the appointment of Sheraz Ramzan as CEO earlier this year, a turnaround strategy has been put in place with the aim of returning the business to profit
Quiz has swung to a loss of £5.2m in its full-year results, down from a profit of £2.3m the prior year, as cost-of-living pressures impacted sales over the period. For the year ended 31 March 2024, the retailer saw sales fall by 11% to £82m against the £91.7m reported in FY23.
The group also reported that EBITDA fell from £6.2m to £0.9m, with the reduced sales in the year “being the main factor” in this fall.
Following the appointment of Sheraz Ramzan as CEO earlier this year, a turnaround strategy has been put in place with the aim of returning the business to profit.
The turnaround plan includes a “fresh marketing approach to elevate the brand”, expanding the group’s distribution channels such as the relaunch of the brand on Debenhams.com, and “reviewing and having greater clarity” on the group’s target customer.
The group is also planning to restructure its Buying and Merchandising function to “provide a clearer focus on developing product and pricing strategies”, which includes recruiting a new head of Merchandising.
In addition, the group said that discussions are underway with Tarak Ramzan, the company’s founder and largest shareholder, regarding a potential £1m loan to provide additional liquidity headroom.
CEO Sheraz Ramzan said: “Whilst these results are disappointing – in part driven by the challenging macroeconomic conditions impacting many retailers – we have a clear plan to improve performance by leveraging our key strengths as an omni-channel retailer with a distinctive brand. We have identified several focus areas to build a more resilient business, improve our performance, and return to profitable growth in the medium term.
“In the new financial year to date we have already implemented several operational initiatives which I am confident will support our longer-term turnaround strategy. Whilst trading conditions in the current year have remained challenging and our turnaround will take time, I am pleased with the speed at which as a team we have been able to drive positive changes in the business.”
