By London-listed fashion brand, Quiz, has announced plans to conduct a strategic review following a weaker-than-expected performance during the crucial Christmas period. The company’s shares plummeted 14% to 6.0 pence after this revelation at 0804 GMT.
Identifying the Issues
Quiz stated that it will miss market expectations for fiscal 2024 as consumer demand dampened during the key Christmas season. The company attributes this decline to the widely reported cost of living and inflationary pressures, which have impacted customer demand throughout the year.
Immediate Strategic Review
In response to these challenges, Quiz will engage in a comprehensive strategic review to explore available options. Although further details were not disclosed, the company plans to share findings during the first quarter.
Revenue Shortfall
The fashion brand anticipates that its revenue for the year ended March 31 will fall approximately 6% to 8% below market expectations, amounting to around GBP86.4 million ($109.2 million). The shortfall in demand over recent months and throughout the key quarter contributes to this revenue deficit.
Financial Performance
Quiz’s financial performance has taken a hit as well. For the first half of the six months ending September 30, the company reported a swing to a GBP1.5 million pretax loss, compared to a GBP1.8 million profit during the same period in the previous year. Additionally, revenue dropped from GBP49.4 million to GBP42.3 million in the corresponding period, largely due to challenging prior year comparatives and inflationary pressures impacting consumer demand.
Uncertain Outlook for U.K Retailers
Given the prevalent cost of living and inflationary pressures confronting consumers in the U.K, Quiz acknowledges the difficulty in predicting short-term outlook, especially for retailers. Such market conditions pose an ongoing challenge for the company and its industry peers.
Focusing on the Future
Despite the adversities, Chief Executive Tarak Ramzan reassures stakeholders that Quiz remains dedicated to making prudent decisions for its long-term future. This includes safeguarding full-price sales and strategic management of the store portfolio.
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