Quiz posts H1 profit, sales increase by 37 percent

Omni-channel fast fashion brand Quiz reported revenues increased 37 percent to 49.4 million pounds for the six months ended September 30, 2022.

The company said in a release that the results reflect stronger consumer demand for the Quiz brand and softer prior year comparatives as a result of Covid-19 related disruption.

Commenting on the interim trading report, Tarak Ramzan, founder and CEO of Quiz said: “The Quiz brand has performed well in the first half of the year, with strong year on year sales growth of 37 percent supporting increased profitability and a strong cash position.”

“Whilst we will not be immune to the widely publicised cost of living pressures on the consumer in the second half of the year, I remain confident that supported by our omni-channel model, fantastic brand and unique occasion wear offering, Quiz is positioned well for long-term, sustainable and profitable growth,” Ramzan added.

Quiz returns to profit in the first half

Gross margin for the period increased 410 bps to 61.6 percent, returning to H1 2020 levels, reflecting improved full-price sell-through. The company’s EBITDA profit increased to 3.7 million pounds compared to 0.7 million pounds in H1 2022.

Operating profit was 1.9 million pounds compared to loss of 1.3 million pounds last year. Pre-tax profit was 1.8 million pounds against loss of 1.3 million pounds and earnings per share were 1.19 pence compared to loss per share of 1.18 pence.

Operational highlights of Quiz’s first half results

The company added that UK store and concession revenues increased 48 percent to 24.6 million pounds, with demand at pre-pandemic levels on a like for like basis.

Online revenues increased 29 percent to 16.1 million pounds driven by sales through Quiz’s own website. Active customers on the company’s website increased 14 percent since March 2022.

International revenues increased 26 percent to 8.7 million pounds.

The company opened two stores in the period, taking the total store estate to 62 stores in the UK and six in the Republic of Ireland; and one further store opening has been completed in the UK since the period ended.

Quiz says current trading in line with expectations

Quiz further said that sales for the two months to November 30, 2022, including the Black Friday sales period, totalled 16 million pounds and were broadly in-line with management expectations with demand in recent weeks helping to offset weaker than anticipated revenues in October.

“While the positive H1 performance reflects strong underlying customer demand for the Quiz brand, the board recognises that the group is not immune to the widely reported cost of living and inflationary pressures impacting across the sector. As a result, the near-term outlook is difficult to predict for many UK retailers,” the company said.

Notwithstanding, the recent volatility in demand and that Quiz’s important Christmas trading and January sales periods are still to come, the Board continues to anticipate delivering a full year outcome which will be at least in line with market expectations.