- Prachi Singh |
Quiz Group revenue increased 35.2 percent to 56.1 million pounds (74 million dollars), while underlying operating profit increased 31 percent to 4.8 million pounds (6 million dollars) and underlying EBITDA increased 32.1 percent to 6.2 million pounds (8 million dollars). Underlying PBT increased 31 percent to 4.8 million pounds (6 million dollars), while underlying EPS rose 35.5 percent to 3.28pence.
Commenting on the company’s performance, Tarak Ramzan, the company’s Founder and Chief Executive Officer, said in a statement: "We are pleased to report a very good performance for the Quiz brand in the first half of the financial year with strong growth delivered across each of the brand's distribution channels, most notably online and international. Current trading has remained strong since the period end and, underpinned by our strong collections, the group enters the important Christmas trading period with good momentum."
Highlights of Quiz’s H1 results
The company said, when the costs of the IPO transaction, which the company floated in July this year and the group restructuring undertaken prior to the IPO and the impact of share based payments, operating profits were 3.7 million pounds (4.9 million dollars) and EBITDA increased to 5 million pounds (6.6 million dollars). The underlying EBITDA margin of 11 percent, the company added was consistent with the 11.2 percent of the previous period.
The Quiz brand continued to grow online with group’s online revenue increasing 204.6 percent to 13.8 million pounds (18 million dollars) in H1 2018. Sales through Quiz's own website increased by 122 percent in H1 2018. The strong growth in sales made through third-party websites, the company added, includes the benefit of commencing sales on the Next website in October 2016 and through Zalando in May 2017. 1.1 million pounds (1.4 million dollars) sales were generated from international markets.
International sales include revenue from Quiz standalone stores and concessions in the Republic of Ireland, standalone stores in Spain and franchises in 20 countries. Sales increased 26.1 percent or 23.2 percent in constant currency to 10 million pounds (13 million dollars). This increase in revenues comprised a 1.1 million pounds increase in revenues generated from the franchise partners and a 0.9 million pounds increase in revenues from stores and concessions in the Republic of Ireland and Spain.
Sales in the UK stores and concessions up 15.2 percent
Sales in the group's UK standalone stores and concessions increased 15.2 percent to 32.3 million pounds (42 million dollars).
During H1 2018 Quiz continued its international expansion opening three stores in Madrid, Spain during the summer, marking the group's first standalone stores outside the UK and the Republic of Ireland. These openings complemented the recent launch of Quiz's own Spanish language website in September. The company also opened a new concession in Galway and in October 2017, a new store was opened in Dublin. As a result, the company now has seven stores and 20 concessions in the Republic of Ireland.
The company also signed new franchises in Dubai, UAE and Morocco, which resulted in the number of international outlets increasing from 65 to 76 points of sale in H1 2018. Quiz’s first direct sales in the US will start in December when it commences trading with Lord and Taylor, New York.
In the UK, Quiz opened one new standalone store in Warrington and four new concessions with existing UK partners. As part of the group's active management of its retail portfolio, the company closed one standalone store in Aberdeen and four concessions in the period. Since September 30, 2017, three new stores have opened in Plymouth, Leicester, and Glasgow with a fourth scheduled to open by the end of November in Bristol. In addition, three new concessions have opened. Further to the expiry of its lease, one store in the Arndale centre in Manchester closed in October. Further to these changes there are now 70 stores and 149 concessions in the UK.
Since the end of H1 2018, the company has witnessed its underlying sales, excluding non-recurring wholesale revenue in relation to Spain in the year ended March 31, 2017, in the seven weeks to November 18, 2017 are up 32.9 percent year on year.