Quiz initiates strategic review as turnover continues to fall

British fast-fashion retailer Quiz Plc suffered a significant drop in sales and a loss of millions in the first half of the 2023/24 financial year.

In its interim report published on Tuesday, the company justified the weak figures with the effects of persistent inflationary pressure and poor consumer sentiment. The clothing supplier also announced that "strategic options" would now be examined under the leadership of chairman Peter Cowgill in order to optimise shareholder value. The results of the review are to be presented at the beginning of next year.

Half-year turnover shrinks by around 14 percent

In the six months to 30 September, Quiz's turnover amounted to 42.3 million pounds sterling. This corresponds to a decline of 14.4 percent compared to the same period last year. Sales in the brand's UK stores and concessions fell by 10.6 percent to 22 million pounds, while e-commerce sales fell by 21.7 percent to 12.6 million pounds. Sales in the international business shrank by 11.5 percent to 7.7 million pounds.

Earnings before interest, taxes, depreciation and amortisation (EBITDA), which stood at 3.7 million pounds in the same period of the previous year, slipped to 1.1 million pounds (-70 percent). The bottom line was a net loss of 1.2 million pounds sterling, following a surplus of 1.5 million pounds sterling in the first half of the previous year.

In the first two months of the second half of the year, the downward trend continued. In October and November, sales totalled 14.2 million pounds, a fall of 11.2 percent compared to the same period last year. Quiz explained that the development thus fell short of the management's expectations.