Quiz reports strong H1 revenues but sees profits drop

Omni-channel fashion brand Quiz has reported group revenue more than doubled to £36 million in the six months to 30 September 2021, with the lifting of social restrictions resulting in sales progressively improving and eventually returning to pre-COVID levels.

Higher level of full price sales and reduced discounting across the business resulted in gross margins increasing to 57.5% from 51.7% in H1.

The rise in operating costs, including distribution and administrative costs, was restricted to 22% as the increased revenues leveraged off the existing infrastructure.

Quiz also saw ecommerce growth, with a 43% increase in sales through its own website and a 27% uplift in total online sales. Active customers increased 30% on the prior financial year in line with demand for the brand's core occasionwear offering.

However, the womenswear brand reported an underlying operating losses of £1.3 million during H1, with an underlying loss before tax of £1.3 million, down from a profit of £10.6 million in the same period of 2020.

Underlying EBITDA increased to a profit of £0.7 million, which represented an EBITDA margin of 1.8%.

The company's store estate comprised of 61 stores in the United Kingdom and five in the Republic of Ireland at the end of H1, with two more opening in the United Kingdom subsequently.

Tarak Ramzan, Founder and Chief Executive Officer, commented: “Quiz has delivered an encouraging set of results during the period with strong cash flows generated and a return to positive EBITDA. The removal of the social restrictions resulted in a substantial uplift in revenues in the Period, as customer demand for the brand’s dressy and occasion wear returned.

“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. Whilst 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.”