Fashion retailer Quiz posts full year loss

Driven by the impact of cost-of-living pressures on consumer demand, Scottish fashion brand Quiz said revenue for the full year decreased 11 percent year on year to 82 million pounds.

Higher levels of full price sales resulted in gross margin increasing to 62.2 percent, EBITDA for the year decreased to 0.9 million pounds, while loss before tax was 5.2 million pounds.

Revenues in the four months to July 31, 2024 decreased 11 percent on the prior year to 27.3 million pounds.

Following a period of difficult trading, the board led by non-executive chairman Peter Cowgill, initiated a thorough review of the strategic options available to the group. As part of this review, Sheraz Ramzan was appointed as chief executive officer on March 28, 2024, shortly prior to the end of the period.

'Disappointing' results ring in strategic review

Commenting on the full year results and outlook, Sheraz Ramzan said: "Whilst these results are disappointing - in part driven by the challenging macroeconomic conditions impacting many retailers - we have a clear plan to improve performance by leveraging our key strengths as an omni-channel retailer with a distinctive brand. We have identified several focus areas to build a more resilient business, improve our performance, and return to profitable growth in the medium term.”

The company expects the change of its largest international partner will drive a positive uplift in trading going forward after revenues in the period were negatively impacted by the transition. Quiz has renewed bank facilities of four million pounds post year end and added that the discussions are on with Tarak Ramzan, the company's founder and largest shareholder about a one million pounds loan facility to provide additional liquidity headroom.

Quiz opened four new stores and two stores were relocated to larger shops in the new design format with two United Kingdom store closures and one Republic of Ireland (ROI) store closure during the period.

At the end of the year, the company’s store estate comprised 64 stores in the United Kingdom and four in the ROI.