Quiz launches review after second profits alert in two months
Fashion retailer Quiz has warned over profits for the second time in as many months after a “significant shortfall” in sales since the start of 2019.
The group said sales across its 71 UK stores and 169 concessions tumbled 11.1% between January 1 and February 28.
Online sales jumped 16.2%, but this was not enough to offset the high street gloom and Quiz said it now expects group underlying earnings of around £4.5 million for the full year.
This is down from the £8.2 million forecast by the group in January, when it last warned on sales and profits after disappointing Christmas trading.
Quiz also warned that full-year sales were now expected to come in at around £129 million, with heavy discounting to shift stock set to affect its profit margins.
It said: “The uncertain consumer spending backdrop has remained challenging for Quiz.
“As a result, the group has recorded a significant shortfall in sales compared to the board’s prior expectations.
“Furthermore, there has been a requirement to apply higher-than-anticipated discounts to clear excess stock.”
Chief executive Tarak Ramzan has now launched a review of “all aspects” of the business to combat the tough trading conditions.
He will report back at the time of the full-year results in June.
He said: “This has been a highly disappointing trading period for the group.
“As a result, the board will be reviewing all aspects of the business over the coming months to ensure that we can deliver the group’s long-term potential despite the changing consumer backdrop and challenging trading conditions.”