Clothing retailer Quiz has released a profit warning, five months after announcing a revenue growth of 30%.
Shares in Quiz dropped by 25% following the announcement with it claiming its recent performance was “behind our expectations” adding that the company’s performance “declined” during the second half of the financial year.
Online sales of products on third party websites such as Next and Zalando were said to have shown little growth over the past six months on the previous six months. The company received a significant hit when department store House of Fraser fell into financial difficulties leading to Quiz losing £400,000 via the concessions it holds in the chain’s stores.
Quiz CEO, Tarak Ramzan said: “Quiz has delivered further good growth during the period despite challenging external trading conditions. I am pleased to say that our new Quiz X Towie ranges have been well received and the most recent trading week has seen an improving trend following a very challenging September in the UK.
“Although online sales through our third-party partners have been disappointing and will impact the group’s performance for the full year, the changing mix towards increased own-website sales will support profitability growth moving forward.
“The continued growth of the Quiz brand in combination with our well-invested infrastructure and flexible business model continue to underpin the board’s confidence in the group’s long-term prospects.”
Despite the profit warning Quiz has seen sales in its own stores and concessions rise by 9% in the first half of the current financial year, while it saw online revenue rise by 44% and sales on its own website rise by 70%.