// Quiz posts underlying loss before tax of £3.7 million in the year to March 31
// Underlying EBITDA fell to £0.6 million from £4.6 million
// Online revenue dropped 9%, “predominantly reflecting lower sales via third-party websites”
Quiz has seen its full-year earnings plunge after making an an underlying loss before tax of £3.7 million versus a profit of £0.6 million the previous year.
However, it said its restructuring measures will help return the group to sustainable growth.
The fast fashion retailer had warned on profits before the Covid-19 struck, and said an overhaul of its store estate would help it through a tough trading environment.
In the year to March 31, Quiz made an underlying loss before tax of £3.7 million, while underlying EBITDA fell to £0.6 million from £4.6 million.
Group revenue was down 10 per cent to £118 million, while online revenue declined nine per cent, “predominantly reflecting lower sales via third-party websites”.
Online accounted for 31.8 per cent of group revenue, and UK store and concession sales dropped 12 per cent.
The pandemic has affected performance, with total sales in the six months to September 30 plunging 73 per cent to £17.2 million.
Quiz said it has £4.8 million of cash and £3.5 million of undrawn banking facilities and “a more flexible and economically viable store portfolio” following restructuring of the estate.
“This was a challenging year characterised by macro-economic uncertainty and challenges presented by the accelerating structural shift towards online retail,” Quiz founder and chief executive Tarak Ramzan said.
The board has taken action to protect its customers and colleagues, preserve liquidity, and restructure its store estate amid the crisis.
“We continue to rebalance our product offering towards more casual clothing to meet the changing lifestyles of our customers,” Ramzan said.
“Looking ahead, we remain confident in the strength of our brand and believe that underlying customer demand remains strong for the brand’s trademark occasion wear which we aim to capitalise on when restrictions on social events are eased.
“We are confident that the actions we have taken to preserve liquidity and reduce our cost base while continuing to invest in the brand mean that the group can return to profitable growth as market conditions improve.”