Quiz has revised its revenue and profit forecasts for the full year following “challenging trading conditions” over the all-important Christmas period.
Group revenue at Quiz increased 8.4% year on year in the six weeks to 5 January, while online sales were up 34%. Instore sales increased by 1.6%.
The business said November was particularly challenging for the group and overall Christmas sales were below expectations.
Quiz said it expects revenues for the full 2019 year to be lower than current market expectations at approximately £133m. A higher level of discounting to clear unsold stock is expected to reduce gross margins in the six months to 31 March 2019 to approximately 60.5% - up from 62% for the six months to 30 September 2018.
The Board now anticipates that the Group’s EBITDA, excluding the previously announced write-off of £0.4m debt arising from the administration of House of Fraser, will be in the region of £8.2m for the full year.
Tarak Ramzan, chief executive, said: “Against the backdrop of challenging trading conditions over recent months, Quiz has delivered further revenue growth over the Christmas period driven by the performance of our own websites. However, the growth and the margin achieved have been below our initial expectations and, consequently, the board considers it appropriate to revise its sales and profit expectations for the current year.
“We remain confident about Quiz’s long-term potential as an omnichannel fashion brand with a clear customer focus. Management’s utmost priority remains achieving further growth for the business and improving profitability in the future.”