Glasgow's Quiz cautions over weaker earnings

Fashion retailer Quiz has warned of lower sales and profits than previously expected.

Quiz floated on the Alternative Investment Market in July 2017. Picture: Contributed

The Glasgow-based group said it had been hit by lower-than-expected sales through third-party online partners in the second quarter, a weaker sales performance as it UK stores and concessions during September and a provision relating to House of Fraser debt.

Underlying earnings for the first half will be “not less than £5.5 million” – £1.5m lower than its previous expectations. Gross margin is expected to be in line with the board’s expectations.

In addition, Quiz said its board had taken the “prudent assumption” that should the trend in online third-party sales continue during the second half of the financial year, group revenue for the full year to 31 March 2019 would be lower than current market expectations at about £138m.

Releasing an afternoon trading update, chief executive Tarak Ramzan told investors: “Quiz has delivered further good growth during the period despite challenging external trading conditions.

“Although online sales through our third-party partners have been disappointing and will impact the group’s performance for the full year, the changing mix towards increased own-website sales will support profitability growth moving forward.

“The continued growth of the Quiz brand in combination with our well-invested infrastructure and flexible business model continue to underpin the board’s confidence in the group’s long-term prospects.”