Quiz profits almost DISAPPEAR as fashion retailer's pre-tax gains PLUNGE by 97 percent

The clothing retailer saw pre-tax profits sink to £0.2million for the year to March 2019, down from £8.5million a year earlier. The fast fashion business pointed the decline to Brexit uncertainty dampening consumer confidence, as well as a decline in high street footfall. But despite concerns over consumer spending, Quiz reported a 12 percent rise in revenues to £130.8million for the year. Online sales helped buoy the company, with digital purchases up 32 percent to £41 million for the year.

Quiz reported revenue growth “across all channels”.

In January and March this year, the retailer warned that profits would be lower than expected as growth came in under expectations.

Quiz said it intends to implement a “sharper focus” on seizing opportunities for online growth after concluding a business review process it started in March.

The review focused on analysing ways to “restore profitable growth” amid the volatile trading environment.

It said it will also look to short-term measures to improve profitability.

This includes terminating some third-party online contracts, a reduction in its exposure to UK department stores and active management of its store estate as leases come up for renewal.

During the year, it opened three new standalone stores and 25 concessions, although it also closed two stores and a concession site.

Tarak Ramzan, founder and chief executive officer, said: “Despite the challenges faced by the group during the period, Quiz’s focus has remained as strong as ever on delivering great products at outstanding value, thereby strengthening our brand’s positive reputation amongst a growing customer base.

“As a result, we have continued to achieve sales growth across our omnichannel model both in the UK and internationally.

“Whilst trading conditions have remained challenging in the year to date, the board remains confident that underpinned by our flexible business model and an increasing online focus, the group can return to sustainable profitable growth.”

In more bad news for the high street, Ted Baker this morning issued a profit warning as retail sales slumped amid “extremely difficult” trading conditions.

The fashion brand reported disappointing figures for its like-for-like retail sales, which dropped by 2.6 percent on a constant currency basis for the 19 weeks to June 8.

Wholesale comparable sales slumped 3.6 percent with currency effects stripped out.

The troubled retailer has now issued an alert over pre-tax profits, which the company said are expected in the range of £50million to £60million for the year to 25 January, 2020.

source: express.co.uk