QUIZ issues profit warning due to Coronavirus outbreak
Multi-channel fast fashion retailer, QUIZ has warned its full-year performance will be impacted by the Coronavirus epidemic and has seen "a substantial reduction” since the outbreak.
The retailer has closed all its stores since 22 March, before the compulsory lock-down was placed by the British government.
The fast fashion retailer said in light of the current global health crises, revenues and margins this month are expected to be "materially below the board’s expectations."
QUIZ also added that the financial year will be affected by factors which determine how quickly debtor balances, the adequacy of inventory provisions and the requirement for further non-cash store fixture and lease provisions will recover.
In response to this, the brand will not be providing any financial guidance for the following year.
Currently, QUIZ said it had net cash of £8.3 million as of March 24, in addition to a £2 million overdraft facility and a £2 million working capital facility. The retailer is seeking their renewal as these are scheduled to expire on 23 April.
QUIZ will be continuing to take steps to preserve liquidity by removing non-essential spend, postponing capital projects, significantly reducing stock intakes and deferring payments where possible.
In January, the fast fashion retailer reported plummeting sales over the seven-week Christmas period as it struggled to cope with “challenging” high street conditions.
The multi-channel fast fashion specialist said group sales dived 9.3% over the period to 4 January, driven by a slide in online sales. Shares plunged 12% in early trading down 2.3p at 16.45p.