UK-based value fashion brand Quiz has revealed a 15% fall in revenues for the five months to 31 August which it attributed to “inflationary cost pressures”.
Between 1 April and 31 August 2023, total revenue at the brand was £37m. This is lower than previous expectations outlined by management.
Online sales were particularly hit in the same period, with a 23.8% decline in revenue through this channel. Sales on the brand’s own site totalled £7.4m, down from £10m in the same period in 2022. Sales through third-party sites added £3.5m in sales.
Quiz says that its Average Transaction Value increased, but an overall decline in web traffic and an increase in return rates year-on-year impacted the revenue generated.
Revenue at the brand’s UK stores and concessions fell 11.5%, which Quiz says reflects a decline in traffic compared to the previous year. Quiz currently has 64 stores in the UK, with three new locations opening, three relocating and one closing since 1 April 2023.
The brand also has 61 concessions in the UK, down from 62 in 2022. Quiz says these locations offer a “flexible and low-cost” route to market compared to its retail outlets.
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International revenue from Irish stores and concessions also declined 10.5% to £2.4m, down from £3m in 2022. The brand currently has five stores and 21 concessions in Ireland. Quiz also receives revenue from international franchise partners, totaling £4.4m in 2023, down from £4.6m in the same period in 2022.
The board says should the current trend in revenues continue through H2, it anticipates FY24 group revenue to be c.6-7% lower than current market expectations (FY 2023: £91.7m).
This will have a knock-on impact on the Group’s profitability and whilst it is anticipated that a positive EBITDA would be generated, if revenues were at these levels, it would be expected to result in a loss before taxation for the year of no more than £1.5m.
Quiz says: “Whilst the impact of cost of living pressures on consumers’ disposable income persists, management continues to retain a tight control on costs and is proactively reviewing all aspects of the business to mitigate the impact of the current economic and trading environment on the Group and identify potential strategies to drive additional revenue growth. Longer-term, the Board remains confident that Quiz’s product proposition and commitment to providing glamorous looks at value prices will continue to appeal.”
Last year, Quiz introduced a new sustainable clothing range, designed and manufactured in the UK, featuring yarns derived from recycled components. It also moved to a profit for the year ended 31 March as revenue surged 97% on the prior year as Covid social restrictions eased, leading to increased demand for its trademark occasionwear.