Quiz sees annual revenues rise but warns of challenges ahead

Quiz has reported a 17% increase in revenue to £91.7 million for the year ending 31 March 2023, supported by the "cessation of all social restrictions leading to increased demand".

The company saw online sales grow 13% through its own website, whilst store sales were benefitted by previous store restructuring.

Active customers were up 11% against the previous financial year, driven by demand for Quiz's core occasionwear offering.

Higher levels of full price sales resulted in gross margin increasing to 61.6%, which is above last year and the level achieved prior to the pandemic.

EBITDA increased 21% to £6.2 million, compared to £5.1 million in 2022.

Profit before tax increased 192% to £2.3 million, compared to £800,000 in 2022.

However, for the three months to 30 June 2023, Quiz saw revenue drop 15% to £23.2 million. This reflects "strong" prior year comparatives, as well as the impact of the macroeconomic uncertainty and inflationary pressures on consumer demand.

Looking ahead, the company said it would continue to focus on growing of revenues from its own stores website and own stores, with three new locations set to open in the UK.

During H2, the trading environment is expected to "remain challenging". Reflecting the uncertainty around consumer demand and inflationary cost pressures, the company expects profit before tax for current year to be similar to that generated in the past year.

Tarak Ramzan, Founder and CEO of Quiz, said: “Our results reflected a strong recovery in consumer demand for QUIZ’s occasionwear-led product offering, resulting in positive sales and profit growth. The past year once again demonstrated the benefits of the group’s omni-channel model as we saw encouraging revenue growth across stores and online.

"The trading environment in the opening months of the new financial year has been tough, reflecting the widely publicised external economic factors impacting consumer demand. Whilst this challenging backdrop is expected to continue into the second half, we remain confident that the group’s omni-channel business model and differentiated brand will enable the group’s long-term success and profitable growth.”