Quiz sees sales surge but warns Omicron could dent festive demand
By Abigail Townsend
Date: Wednesday 08 Dec 2021
(Sharecast News) - Quiz reported a surge in sales on Wednesday but warned that the crucial festive trading season could be hit by concerns about the Omicron variant.
The fashion retailer, which specialises in occasion wear, reported group revenues for the six months to 30 September of £36.0m, a 109% jump on the same period a year previously, after Covid-19 restrictions were eased.
Gross margin was boosted by more full price sales and reduced discounting, rising to 57.5% from 51.7% a year previously.
Underlying earnings before interest, tax, depreciation and amortisation were £700,000, against last year's loss of £3.3m. The pre-tax loss was £1.3m compared to a pre-tax profit of £10.6m in the first half of 2020, when the figures were boosted by disposals.
Since the half-year end, revenues in the two months to 30 November have jumped 108% year-on-year, consistent with pre-pandemic levels, and Quiz said it was confident it could return to profitability.
However, it conceded that was only likely to happen "in a trading environment not significantly impacted by Covid-19 restrictions". And it acknowledged there was "potential for sales in key trading month of December to be impacted if concerns over the Omicron variant suppress demand".
Tarak Ramzan, founder and chief executive, said: "The positive steps taken over the last 18 months with regards to restructuring our business, tight cost control and inventory management have all proved beneficial.
"While there continues to be uncertainty in the short-term we remain confident in the strength of our brand, and are highly confident that the clear demand for Quiz's trademark occasion-wear will support continued profitable growth."
As at 0900 GMT, shares in Quiz were ahead 3% at 19.05p.
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