Quiz swings to profit as demand for partywear returns
Fashion retailer Quiz has swung back to profit as shoppers stocked up on occasion wear in the Black Friday sales.
The retailer, which sells occasion and dressy casual clothing and accessories, said it has returned to profitability in the last half year as a result of restructuring and tightly managing costs and stock.
The chain posted pre-tax profits of £1.8 million in the six months to September 30, up from £1.3 million in losses it reported in the same period last year.
It also saw group revenues shoot up by 37% from £36 million last year to £49.4 million this year, and marking a return to pre-pandemic levels.
This reflected growing demand for partywear as big events returned and following the impact of the Omicron variant last winter.
Furthermore, stronger sales over recent weeks including the Black Friday sales period helped to offset weaker than expected revenues in October, it said.
Quiz said it has been impacted by higher operational costs, like other retailers, as it is “not immune” to cost inflation pressures hitting the industry.
But the group, which has 62 stores in the UK as well as 62 concessions in stores such as New Look, said it has continued to cut costs wherever possible to save money.
It follows a restructuring move in 2020 which put several loss-making stores into administration, which it confirmed has helped reduce rents across its portfolio since.
The near-term outlook is difficult to predict for many UK retailers as a result of cost-of-living pressures, Quiz cautioned.
But it is expecting a sales boost following the important Christmas trading, including the Christmas party season, and January sales periods still to come.
Tarak Ramzan, founder and chief executive of Quiz, said: “The Quiz brand has performed well in the first half of the year, with strong year-on-year sales growth of 37% supporting increased profitability and a strong cash position.
“Active customers increased 14%, reflecting the appeal of our differentiated and value brand.
“While we will not be immune to the widely publicised cost-of-living pressures on the consumer in the second half of the year, I remain confident that supported by our omni-channel model, fantastic brand and unique occasion wear offering, Quiz is positioned well for long-term, sustainable and profitable growth.”
The group expects its full-year profits to be at least in line with current market expectations
Published: by Radio NewsHub