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.

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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.”