Quiz swings to full-year loss, shares slide
By Michele Maatouk
Date: Thursday 29 Aug 2024
(Sharecast News) - Quiz shares tumbled on Thursday as the fashion retailer said it swung to a full-year loss as cost-of-living pressures dented consumer demand.
In the year to the end of March, the company swung to a pre-tax loss of £6.7m from a profit of £2.3m the year before, with revenue down 10.6% to £82m.
Quiz highlighted the impact of inflationary pressures on consumer confidence and spending.
Online revenue fell 18% to £24.5m, while revenue from UK stores and concessions declined 8% to £41.7m. The international segment saw an 11% drop to £82m.
The company said it has now begun talks with founder and largest shareholder Tarak Ramzan with regards to the provision of a £1m loan facility "to provide additional liquidity headroom for working capital purposes".
Chief executive 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."
At 0950 BST, the shares were down 18% to 4.18p.
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