Quiz re-strategises after financially falling short
Womenswear retailer, Quiz, has launched a strategic review of the business after it dipped into a pre-tax loss of £1.5 million - compared to a profit of £1.8 million a year earlier - in the six months up to 30 September 2023.
The high street retailer saw its revenues decline by 14% to £42.3 million, citing the cost of living pressures combated with lower demand for its dressy occasionwear as a recipe for disaster.
Chief Executive of Quiz, Tarak Ramzan, told TheIndustry.fashion: "Some people have money and are holding on to it, but a lot of people don’t have the money. Mortgage rates and energy prices have gone up. The average working person lives month to month. We can see the way our sales spike at the end of the month."
Revenues in the retailer’s UK stores and concessions fell by 11% to £22 million, while online sales dropped by 22% to £12.6 million. International revenues also saw hardships, falling by 11%.
The company warned that its full-year sales would miss market estimates due to weak Black Friday revenue.
Given the group’s recent trading performance, the board has decided to immediately initiate a "thorough review of the strategic options available to the group to maximise shareholder value”.
This process is being led by Peter Cowgill and business advisor Panmure Gordon, with findings expected to be shared in the first quarter of 2024.
Tarak Ramzan commented: “This has been a challenging period for many retailers, and we have not been immune to the widely publicised macro headwinds impacting consumer demand.
“Notwithstanding the ongoing pressure on consumers, we have continued to focus on making the right decisions for our long-term future, including prioritising protecting full-price sales and carefully managing our store portfolio.
“I remain confident that Quiz remains a strong, distinctive brand known for providing glamorous looks at good value prices. However, given the prolonged period of challenging trading, we believe it is prudent to examine a range of options to maximise shareholder value.”
