Quiz warns over ‘tough’ sales conditions as inflation weighs on shoppers
Fashion chain Quiz has posted a jump in profits for the past year but cautioned over “tough” trading conditions in recent months as shoppers come under pressure from inflation.
The womenswear business said it saw a “strong recovery” over the year to March but has seen sales slide more recently.
Quiz recorded a 15 per cent decrease in revenues to £23.2 million for the past three months to the end of June as it was impacted by tough comparatives from the previous year and “inflationary pressures on consumer demand.”
Tarak Ramzan, founder and chief executive officer of the business, said: “The trading environment in the opening months of the new financial year has been tough reflecting the widely publicised external economic factors impacting consumer demand.”
He highlighted that the challenging backdrop is expected to “continue into the second half” of the financial year but told shareholders he is confident the group can achieve profitable growth in the longer term.
On Wednesday morning, the retailer reported a pre-tax profit of £2.3 million for the year to March 31, compared with a roughly £800,000 profit a year earlier.
It came after revenues grew by 17 per cent to £91.7 million for the year.
Quiz said it benefited from increased sales of products at full price as well as efforts to control costs and offset inflationary pressure during the year.
Mr Ramzan added: “Our full-year 2023 results reflected a strong recovery in consumer demand for Quiz’s occasion-wear-led product offering, resulting in positive sales and profit growth.
“The past year once again demonstrated the benefits of the group’s omni-channel model as we saw encouraging revenue growth across stores and online.”
By Press Association