Quiz swings to loss as online sales fall

Quiz has swung to a loss of £3.7m in the full-year ended 31 March 2020, against a profit of £0.6m the previous year. In its latest preliminary results, the clothing retailer also confirmed that group revenue fell by 10%, while underlying EBITDA fell to £0.6m for the full-year, against the £4.6m reported in 2019. Meanwhile, online revenue fell by 9% year-on-year to £37.5m, down from £41m the year before, with the decline predominantly reflecting lower sales through third-party websites, according to the group. International sales also fell by 5% to £21.8m, which the group attributed to declining revenues from stores and concessions in the Republic of Ireland, as well as the cessation of certain franchise sales. In addition, revenue from UK stores and concessions tumbled 12% to £58.7m. In its latest update, the group noted that the pandemic has continued to “significantly” impact sales in its current financial year. As a result, total sales in the six months to 30 September 2020 totalled £17.2m, a 73% decline on the £63.3m revenues generated in the previous year. Since March, the group has taken action to restructure the business, resulting in lower future rental costs and more “flexible” leases. Looking ahead, it said that such measures will provide the business with a “more flexible and economically viable” store portfolio, with an average lease term of 24 months and a significantly lower cost base. Tarak Ramzan, founder and CEO, said: "Whilst we are pleased with the further growth in our customer base during FY20, this was a challenging year for QUIZ characterised by macro-economic uncertainty and challenges presented by the accelerating structural shift towards online retail. “In addition, from early March the group, along with the wider retail sector, faced significant challenges as a result of the COVID-19 pandemic. The Board has taken decisive action to protect its customers and its people, preserve liquidity, and restructure its store estate to align the group's business model to the new reality of store retail.” He added: “Looking ahead, we remain confident in the strength of our brand and believe that underlying customer demand remains strong for the brand's trademark occasion wear which we aim to capitalise on when restrictions on social events are eased. “We are confident that the actions we have taken to preserve liquidity and reduce our cost base while continuing to invest in the brand mean that the group can return to profitable growth as market conditions improve.”

Quiz swings to loss as online sales fall

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