LONDON (ShareCast) - (Sharecast News) - Fast fashion retailer Quiz was under the cosh on Friday as it warned that earnings for the first half of 2019 would be lower than previously expected, while full-year revenue could fall short of current market expectations.
The company, which said last month that it would take a £400,000 hit from the collapse of House of Fraser, pinned the blame on lower-than-forecast second-quarter sales through third-party online retailers, the performance of its UK stores and concessions and the provision against the outstanding HoF debt.

First-half 2019 earnings before interest, taxes, depreciation and amortisation are now expected to be not less than £5.5m - £1.5m lower than the company previously expected. In addition, the group said it has "taken the prudent assumption" that should the trend in online third-party sales continue, group revenue for the full year to the end of March 2019 would undershoot current market views of around £138m, down from £116.4m in 2018, while group EBITDA would be around £11.5m.

In the six months to 30 September, group revenue rose 19% to £66.7m despite challenging external trading conditions. Meanwhile, sales in UK standalone stores and concessions were up 9% to £35.1m. Sales were especially strong through this channel through the summer, but September saw a drop in footfall that led to a lower sales performance.

Online revenue was 44% higher at £20m and sales from the brand's own websites were up 70% year-on-year. International sales were up 16% to £11.6m, but online sales through third-party website were broadly flat compared to the second half of 2018, behind the group's expectations. Quiz said it's "working closely" with its third-party online partners to try to address this trend during the second half.

Chief executive Tarak Ramzan said: "I am pleased to say that our new Quiz X TOWIE ranges have been well received and the most recent trading week has seen an improving trend following a very challenging September in the UK.

"Although online sales through our third-party partners have been disappointing and will impact the group's performance for the full year, the changing mix towards increased own-website sales will support profitability growth moving forward.

"The continued growth of the Quiz brand in combination with our well-invested infrastructure and flexible business model continue to underpin the board's confidence in the group's long-term prospects."

Quiz had been scheduled to release its trading update next Thursday.

At 1515 BST, the shares were down 25.5% to 110.02p.

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