Quiz reports strong revenue recovery and return to profitability
Omni-channel fashion brand Quiz has reported group revenue increased 97% year on year to £78.4 million in the year ending 31 March 2022.
Quiz argued that the increase in group revenues can be "attributed to the removal of social restrictions", which led to an "increased demand" for its product offering as well as a "reduction in the amount of time that stores and concessions were closed".
- Higher levels of full price sales resulted in an increase to the gross margin at 60.3%, consistent with the gross margin generated in the year prior to the pandemic, from 53.4% in FY 2021.
- The rise in operating costs, being distribution and administrative costs, was restricted to 22% as the increased revenues leveraged off the group’s existing infrastructure.
- Underlying and reported EBITDA of £5.1 million, compared to an underlying loss of £4.9 million and reported profit of £10.7 million in 2021.
- Strong online growth, with a 66% increase in sales through QUIZ’s own website. Active customers also increased 74% compared to the prior financial year.
The company also saw a recovery in International revenues with a 96% increase year on year. Quiz's store estate comprised 62 stores in the United Kingdom and five in the Republic of Ireland at the end of the year, with one new store opening in FY22.
Tarak Ramzan, Founder and Chief Executive Officer, commented: “The Group delivered a very encouraging FY 2022 performance with very strong revenue growth and a return to profitability. This outcome reflects increased demand for QUIZ’s product offering and was supported by the decisive actions we have taken in recent years to transform the business and successfully leverage the Group’s omni-channel model and infrastructure.
“We are very pleased with the strong uplift in active customers and sales growth through our own website, which is now supported by a flexible and profitable portfolio of stores and concessions. Despite the well-documented challenges across the retail sector, we remain encouraged by customer demand for the QUIZ brand, with sales up by 62% in the year to date. Whilst there are significant levels of uncertainty impacting the consumer right now, we are confident that QUIZ is well positioned to continue to deliver against its strategy and drive long-term, sustainable and profitable growth.”
Looking ahead, Quiz said that revenues increased 62% in the three months to 30 June 2022 compared to the prior year and were consistent with the levels generated prior to the COVID-19 disruption on a like-for-like basis. Potential for sales later in the year however are "likely to be impacted by the effect of the inflationary environment" and increases in the cost of living on consumer confidence.