LONDON (ShareCast) - (Sharecast News) - Fast fashion retailer Quiz said on Wednesday that it swung to an interim loss amid "challenging" conditions as it warned of more store closures.
In the six months to 30 September, the company swung to a pre-tax loss of £6.8m from a profit of £3.8m in the first half of last year, while underlying pre-tax profit slumped 85% to £0.6m as it took a £7m non-cash exceptional charge in relation to impairment of store assets and onerous lease provisions.

Quiz said trading conditions on the UK high street had remained "very challenging", with a continued reduction in footfall across its standalone stores and concessions resulting in a "sustained and weaker than initially anticipated" negative like-for-like performance.

Group revenue fell 5% to £63.3m, with revenue from UK stores and concessions down 11% to £31.3m. International sales edged up 3% to £12m and online revenue was steady at £20m.

"In the current year where leases have expired, we have negotiated sufficient rent reductions to allow each store to trade profitably,2 the company. "We will, however, close stores where we are unable to secure terms that enable long-term store profitability going forward."

Founder and chief executive Tarak Ramzan said: "Whilst it is disappointing to report a decline of profits year-on-year, management are focused on implementing the actions identified further to the group's business review conducted earlier in 2019.

"Quiz has continued to achieve sales growth in its international business and, in particular, online despite the challenging trading conditions. This has been supported by effective marketing investment including a successful collaboration with TV star Samantha Faiers."

At 0807 GMT, the shares were down 8% at 15.38p.

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