- Huw Hughes
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Shares in UK women’s fashion retailer Quiz dropped by 50 percent on
Thursday after the company issued its second profit warning of the year
amid an “uncertain consumer spending backdrop”.
While the company said it had continued to increase sales online during
the period with group online revenue up 16.2 percent, that was offset by an
11.1 percent decrease in revenue across its standalone stores and
concessions. That resulted in group revenue decreasing by 1.7 percent
year-on-year in the two-month period.
Full-year profits are now set to be 4.5 million pounds, compared to the
previously predicted 8.2 million pounds. That prediction, made in January,
was down from 11.5 million pounds predicted in October.
Quiz issues fresh profit warning
However, Quiz said in its report that its balance sheet remains strong
with net cash of 8.9 million pounds as of 5 March 2019. The group added
that, in light of its recent trading performance, its board is now
“instituting a thorough review of all aspects of the business with a view
to mitigating the effects of changed trading conditions.”
The company expects to report its findings from the review in June 2019
at the same time as its preliminary full-year results for
FY 2019.
“Whilst the Board remains confident in the strength and appeal of the
Quiz brand, as demonstrated by our continued sales growth online, this has
been a highly disappointing trading period for the Group,” Tarak Ramzan,
CEO of Quiz said in a statement.
“As a result, the board will be reviewing all aspects of the business
over the coming months to ensure that we can deliver the Group’s long-term
potential despite the changing consumer backdrop and challenging trading
conditions.”
Photo credit: Quiz, Facebook
