Quiz to launch “thorough review” after fresh profit warning

// Quiz group sales dropped 1.7% year-on-year
// Quiz predicts full year EBITDA to be at £4.5m, almost half of previous forecast of £8.2m

Quiz has suffered a “significant shortfall” in January and February sales amid a “challenging” market” and plans to launch a “thorough review” of the business in response.

In its latest trading update, the fashion retailer said it had to “apply higher than anticipates discounts” in order to clear stock.

Meanwhile, online sales went up 16.2 per cent during the first two months of the year, but the increase was balanced out by an 11.1 per cent slump in revenues from stores and concessions.

Its group sales dropped 1.7 per cent year-on-year during the period.

Quiz now predicts full-year EBITDA to be at £4.5 million, compared to its previous expectation of £8.2 million.

This comes after Quiz first slashed its EBITDA predictions down from £11.5 million after a stormy Christmas trading period.

The retailer will reveal the results of its review amid its full year results in June.

”Whilst the board remains confident in the strength and appeal of the Quiz brand, as demonstrated by our continued sales growth online, this has been a highly disappointing trading period for the group,” Quiz chief executive Tarak Ramzan said.

“As a result, the board will be reviewing all aspects of the business over the coming months to ensure that we can deliver the group’s long-term potential despite the changing consumer backdrop and challenging trading conditions.”

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