Quiz sales plunged 15.3% in the five months to 31 August as it warned it will now make a £1.5m pre-tax loss for the year.
The fashion retailer said that “inflationary cost pressures have continued to impact consumer confidence and demand for Quiz’s products”, as sales fell below management’s expectations.
It now forecasts sales to be 6% to 7% below current market expectations, which it said would have a knock-on impact on profitability.
This compares to the £2.3m profit made in its last financial year.
Quiz’s UK stores and concession sales fell 11.5% due to declining footfall while online revenue plummeted 23.8% due to a decline in traffic and an increase in return rates. International sales dropped 10.5%.
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The fashion retailer said it is focused on “preserving its balance sheet and maintaining an appropriate net cash position”. It has liquidity headroom of £6.4m.
It said: “Whilst the impact of cost-of-living pressures on consumers’ disposable income persists, management continues to retain a tight control on costs and is proactively reviewing all aspects of the business to mitigate the impact of the current economic and trading environment on the group and identify potential strategies to drive additional revenue growth.
“Longer-term, the board remains confident that Quiz’s product proposition and commitment to providing glamorous looks at value prices will continue to appeal.”
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