// Quiz reports a loss before tax with underlying EBITDA dropping by over 50%
// In the six months to September 30, the retailer made a loss of £6.8 million
Quiz has recorded a loss before tax with underlying EBITDA dropping by more than half as more shoppers headed online.
The fast fashion retailer made a loss of £6.8 million in the six months to September 30, compared to a profit of £3.8 million for the same period in 2018.
Underlying EBITDA fell 54 per cent to £2.7 million, and underlying profit before tax fell 85 per cent to a mere £0.6 million.
Meanwhile, group revenue fell by five per cent to £63.3 million, down from £66.7 million the previous year.
Nevertheless, EBITDA edged up four per cent to £5.8 million, while underlying profit before tax was £600,000, down from £4.2 million during the same period in 2018.
The retailer reported that UK stores and concessions sales fell by 11 per cent to £31.3 million.
Online sales were “consistent” at £20 million, while international sales rose three per cent to £12 million.
Underlying online revenue increased seven per cent to £20 million, while sales on Quiz’s website increased by 12 per cent.
The fashion retailer opened two new stores and nine concessions during the period.
“Whilst it is disappointing to report a decline of profits year-on-year, management are focused on implementing the actions identified further to the group’s business review conducted earlier in 2019,” Quiz chief executive Tarak Ramzan said.
“We are pleased to report progress improving gross margins and reducing costs across the business and will look for further improvements to develop our omnichannel offering.
“Quiz has continued to achieve sales growth in its international business and, in particular, online despite the challenging trading conditions.
“The exceptional charge incurred in relation to store impairments and onerous leases is partially attributable to the structural shifts whereby consumers are increasingly shopping online.
“We have a clear customer focus, a healthy brand and a flexible model that the Board believes will enable Quiz to adapt to the changing retail environment and return to profitable growth in the medium term.”