Fashion brand Quiz says its full-year revenues were impacted by prolonged periods of stores and concessions closures, as well as the material detrimental impact on demand for its trademark occasionwear as social events and activities were curtailed.
In a trading update today (14 April), Quiz says for the financial year ended 31 March 2021 revenues tumbled 66% to GBP39.7m (US$54.7m) from GBP118m a year earlier.
By revenue stream, UK stores and concessions weathered the largest decline at 82% with sales falling to GBP10.5m from GBP58.7m a year prior. International sales were down by 65% to GBP7.6m, while online sales fell 42% compared to last year to GBP21.6m.
Of its 87 concessions that are currently open across England and Wales, Quiz says 72 are located in Debenhams stores which are scheduled to close by the end of May. Revenues from Debenhams UK concessions in FY 2021 amounted to GBP3.4m, compared to GBP16.5m a year earlier. Subsequent to 31 March 2021, Quiz has ceased to sell product through the Debenhams website. Revenues from this channel in FY 2021 amounted to GBP5.5m, compared to GBP7.7m a year prior.
Given the previous decline in revenues, the group does not anticipate that the termination of sales through Debenhams will materially impact upon its profitability or cash flows.
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It is currently anticipated that the stores and concessions in Scotland and Northern Ireland will reopen on 26 April, although this remains subject to confirmation.
Meanwhile, despite the drop in revenues, Quiz says the group has retained a net cash balance of GBP1.5m.
“With prolonged periods of store closures, the past 12 months has been a very challenging period for many in the UK retail sector, and Quiz has not been immune to this. However, against this difficult trading backdrop, the group has taken proactive actions to preserve cash and realign our store estate for the future retail landscape,” says CEO Tarak Ramzan.
“In addition, we remain confident that there is robust underlying demand from our customers for the Quiz brand and our trademark dressy and occasionwear. We are looking forward to being able to serve customers again through our store estate and to the gradual opening up of the retail and leisure economies over the coming months, which we believe we are well placed to benefit from.”
The company expects to publish its full FY 2021 results for the financial year ended 31 March 2021 in late summer.
