Despite celebrating a robust recovery up to March with pre-tax profits rising from £800,000 to £2.3 million, the firm experienced a double-digit sales decline in the current financial year’s first quarter. These falling sales have been attributed to the ongoing inflationary pressures, which have dented consumer confidence and demand for the company’s offerings.

Recent statistics revealed an 11.5% fall in store sales, amounting to £19.3m by the end of August. Concurrently, the company’s online sales dropped by 23.8% to £10.9m, and international sales saw a 10.5% decrease at £6.8m. Specifically, from the company’s British operations, revenues from their stores and concessions experienced a 12% dip, equating to £19.3m from £21.8m.

Such a downturn is perceived to be a consequence of reduced footfall, which was previously bolstered by post-lockdown traffic. Quiz’s own online platform generated sales of £7.4m, a decline from the previous £10m, while third-party online sales went down from £4.3m to £3.5m.

Internationally, revenues from Irish operations decreased to £2.4m from £3.0m, with franchise partners contributing £4.4m, slightly down from the £4.6m in the preceding year.

Financial records indicate the firm’s liquidity has shrunk to £6.4m, a drop from March’s £8.3m. Furthermore, Quiz’s cash balances decreased to £3.2m from the previous £6.2m. The company also highlighted an undrawn bank borrowing amount of £3.2m, set to expire in June next year.

In the face of current economic challenges, Quiz remains resolute, focusing on cost containment and seeking strategic avenues to stimulate revenue growth. The board maintains optimism for the brand’s long-term prospects, believing in its product range and dedication to delivering chic fashion at affordable prices.