Quiz in strategic review as financial woes hit Scottish retailer
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Glasgow-based fashion retailer Quiz has initiated a strategic review after it reported a pre-tax loss of £1.5 million for the first half of the year ending September 30, a stark contrast to the £1.8m profit in the previous period.
Sales during this period dropped by approximately 15%, totalling £42.3m, down from £49.4m. The decline in sales was attributed to inflationary pressures affecting consumer spending, a trend that continued into the crucial Christmas and New Year trading period.
In the two months leading to November 30, which included Black Friday sales, Quiz’s revenue further declined by 11% to £14.2m. Chief executive Tarak Ramzan cited the challenging retail environment and macroeconomic headwinds as key factors impacting consumer demand.
Mr Ramzan said:
“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 taking 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.”
With the outlook for consumer spending remaining uncertain, Quiz expects a significant full-year revenue shortfall, with predictions of 6-8% lower than current market expectations. Consequently, the year-end loss before taxation is anticipated to be considerably larger than previously forecasted.
Despite these challenges, the directors maintain confidence in Quiz’s multi-channel strategy, combining physical stores and online sales. However, the recent trading performance has prompted the board to thoroughly review strategic options to maximise shareholder value. This review, led by Quiz’s chairman Peter Cowgill, is expected to present its findings in the first quarter of 2024.
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