Quiz cautions over 'tough' trading conditions, shares slide

Quiz posted a jump in full-year profit and revenue on Wednesday but pointed to "tough" trading in the opening months of the new financial year, sending shares in the fashion retailer tumbling.

In the year to the end of March, pre-tax profit rose to £2.3m from £800,000 a year earlier, with revenue up 17% to £91.7m amid increased demand.

Quiz noted higher levels of full price sales, which resulted in gross margin increasing to 61.6% from 60.3% the year before. This was above the level achieved prior to the pandemic. It also hailed "efficient cost control".

Founder and chief executive Tarak Ramzan said: "Our FY 2023 results reflected a strong recovery in consumer demand for Quiz's occasion-wear-led product offering, resulting in positive sales and profit growth.

"The past year once again demonstrated the benefits of the group's omni-channel model as we saw encouraging revenue growth across stores and online."

However, the retailer cautioned over tough trading conditions at the start of the new financial year, with revenue down 15% in the three months to 30 June to £23.2m. Quiz said this partly reflects the strong prior year comparatives in the first half "as well as the impact of the macroeconomic uncertainty and inflationary pressures on consumer demand".

Ramzan said: "The trading environment in the opening months of the new financial year has been tough reflecting the widely publicised external economic factors impacting consumer demand.

"Whilst this challenging backdrop is expected to continue into the second half, the board remains confident that the group's omni-channel business model and differentiated brand will enable the group's long-term success and profitable growth."

At 0930 BST, the shares were down 11.3% at 9.45p.