Quiz losses deepen due to Covid store closures

Fashion retailer Quiz has reported deepening losses as rolling store closures due to pandemic restrictions hammered its revenues.
Quiz has said it will now focus on generating revenues from its stores and website,
// Quiz reports an underlying pre-tax loss of £9.6 million compared to a loss of £3.1 million in the previous year
// The retailer said that in the six months to August 31 it had made £30.6m in sales

Quiz has reported deepening losses as rolling store closures due to pandemic restrictions hammered its revenues.

The fashion retailer has seen its full year group revenue decline by 66 per cent to £39.7 million after it struggled as stores were forced to close and fewer customers bought occasion wear at the height of the Covid-19 pandemic

In the year to March 31, the retailer reported an underlying pre-tax loss of £9.6 million compared to a loss of £3.1 million in the previous year.

Gross profit at the business also fell to £21.2 million, down from £71.1 million the previous year, while gross margins decreased to 53.4 per cent from 60.3 per cent due to physical retail closures.

Quiz said it had used the pandemic to take “decisive actions” in reducing its cost base by 47 per cent.

The retailer reduced its store portfolio during the period, focusing instead on more prime locations, and slashed its rental cost base and said its rents are now performance based and more flexible than before.

However Quiz has seen a gradual improvement in sales since the removal of Covid related restrictions with its performance now approaching pre-pandemic levels on a like-for-like basis.

As a result, sales have reached £30.6 million since the period end, which is £17.4 million more than the same period last year.

Quiz founder and chief executive Tarak Ramzan said: “Against a backdrop of highly challenging trading conditions during the year, including the enforced closures of stores and concessions for substantial periods and the cancellation of social events that are a key driver for demand of Quiz’s trademark occasion wear, we have taken decisive actions to position the business to return to long-term profitable growth, including reducing the size of our store estate, decreasing costs, and maintaining very tight cash management.”

“We have continued to invest in our own ecommerce channels as we optimise our omni-channel model. We remain confident in the strength and appeal of Quiz as an occasion wear led brand, as has been evidenced by the increase in demand and positive trends across our operational KPIs as social events returned during the summer.

“This continues to underpin the Board’s confidence in our ability to continue to improve performance and achieve profitable growth as more normal trading patterns return.”

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