Quiz has issued its second revenue warning in simply over three months, because the womenswear retailer’s woes proceed following a weaker than anticipated Christmas.
The corporate mentioned heavy discounting meant its foremost measure of income for the 2019 monetary yr could be £8.2m, 29% decrease than the £11.5m it anticipated when it minimize its forecasts in October.
Revenues for the total yr to 31 March 2019 can be even be decrease than present market expectations, at £133m, down from forecasts of £138m, Quiz mentioned.
Shares slumped by greater than 24% on Friday to 27p. The share value has now fallen by greater than 80% since July, when it hit a excessive of 205p.
Quiz’s revenue downgrade comes amid a difficult time for the British retail business, which is battling weaker demand from shoppers, prompted partly by Brexit uncertainty, in addition to rising prices and intense competitors.
Retailers in 2018 endured their worst Christmas because the monetary disaster, with British Retail Consortium figures displaying that whole gross sales progress dropped to zero in December for the primary time since 2008, with all areas of the excessive road hit by a fall in gross sales besides meals.
Quiz raised greater than £100m when it listed in July 2017 – giving £92.1m to its shareholders – however has since struggled to develop gross sales quick sufficient.
The retailer mentioned its whole income elevated by 8.4% within the six weeks to five January, with on-line gross sales up by 34.1%. Nonetheless, it considerably elevated its workers and advertising and marketing prices in latest months, weighing on income.
Tarak Ramzan, Quiz’s chief government, mentioned the corporate had confronted a “backdrop of difficult buying and selling situations over latest months”.
Ramzan mentioned: “Quiz has delivered additional income progress over the Christmas interval pushed by the efficiency of our personal web sites. Nonetheless, the expansion and the margin achieved have been beneath our preliminary expectations and, consequently, the board considers it acceptable to revise its gross sales and revenue expectations for the present yr.
Ramzan, the founding father of Quiz within the early 1990s, added he was “assured about Quiz’s long-term potential”.