Quiz has reported a substantial loss nearing £7 million as the ongoing cost-of-living crisis continues to influence consumer spending habits.
For the fiscal year ending March 31, the fashion retailer disclosed a pre-tax loss of £6.7 million, marking a stark contrast to the £2.3 million profit recorded the previous year.
Sales fell by 10.6%, totaling £82 million, primarily due to an 18% drop in online sales, which amounted to £24.5 million, coupled with an 8% decline in revenues from physical stores and concessions, which reached £41.7 million. The international sales segment also saw a decrease of 4%, down to £15.8 million.
Despite these setbacks, Quiz asserted that it is making strides in its transformation strategy. The company noted that various initiatives aimed at improving its performance resulted in “an improvement in store and online revenue compared to prior months.”
This strategy, spearheaded by newly appointed CEO Sheraz Ramzan, seeks to leverage the company’s strengths, including a strong omni-channel approach, the uniqueness of the Quiz brand, its retail presence, and its international footprint.
The retailer recognized that the current trading landscape is still impacted by inflation, as first-quarter sales dipped by 11%, totaling £27.3 million for the four months ending in July.
CEO Sheraz Ramzan characterized the financial results as “disappointing,” yet conveyed a sense of optimism that the retailer “will regain profitable growth.”
He remarked: “We have a definitive plan to enhance our performance by capitalizing on our key strengths as an omni-channel retailer with a unique brand.”
“We have pinpointed several areas of focus that will help us create a more resilient business, enhance our performance, and return to profitable growth in the medium term.”
“We have already introduced various operational measures this financial year which I believe will underpin our longer-term turnaround strategy.”
“Even though the trading conditions this year have remained tough and our recovery will take time, I am encouraged by how swiftly our team has initiated positive changes within the business.”
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