QUIZ posts strong online and international growth and confirms profit expectations

Fast fashion omnichannel retailer QUIZ achieved a 34% growth in online sales, and 12% growth overall, in the year to 31 March 2019 and has said it has "noted" the recent developments at Debenhams where it operates 108 concessions.

During the period, the Glasgow-based business achieved sales of £130.9m compared to £116.4m in the the prior year. Online sales hit £41m, up 34%, and international sales were up 8% at £23m, a trading update confirmed this morning.

UK stores and concessions showed the weakest growth, of 4%, achieving sales of £66.9m. UK revenues benefited from the opening of three new standalone stores and the relocation of two stores into larger refurbished units.

Per the company's profits warning last month as a result of the weaker than expected UK growth, it confirmed that it expected EBITDA for the year to be around £4.5m.

The business said it had been closely eyeing the developments at Debenhams, where its 108 concessions account for 23% of its overall revenues. Debenhams was officially placed into the hands of its lenders this week in a pre-pack administration after rebuffing several rescue attempts by Sports Direct's Mike Ashley.

The department store, which is being actively marketed for sale by advisers Lazard, is pressing ahead with a restructuring that may lead to the closure of 50 stores over the next three to five years.

"We note the recent announcement from Debenhams plc that whilst they have entered into administration the underlying operating companies continue to trade as normal with suppliers expected to be unaffected.

"QUIZ operates 108 Debenhams concessions in the UK and 11 in the Republic of Ireland and sells its product through the Debenhams website.  Revenues from these activities represented 23% of overall revenues generated during FY 2019. We look forward to continuing to work productively with Debenhams going forward," QUIZ said in its trading update.