Quiz returns to profitability in H1 as demand rises

Quiz has welcomed a “significant” increase in profitability in its half-year results, as profit before tax hit £1.8m, up from a loss of £1.3m the prior year, after the group witnessed stronger consumer demand for the brand. The group, which also benefited from softer prior year comparatives as a result of Covid-19 related disruption, saw revenues increase by 37% to £49.4m in H1, while EBITDA rose to £3.7m, up from £0.7m the prior year. UK store and concession revenues increased by 48% to £24.6m, with demand returning to pre-pandemic levels, while online revenues increased 29% to £16.1m, largely driven by sales through Quiz's own website. Over the period, operating costs, being administrative and distribution costs, increased by only 25%, compared with the 37% increase in revenues, as the group was able to leverage off its existing infrastructure. The group also opened two stores in the half-year, taking its total estate to 62 stores in the UK and six in the Republic of Ireland, with one further store opening completed in the UK since the period end. Despite the positive H1 performance, the group warned that it is “not immune” to the cost of living crisis and inflationary pressures impacting across the sector. In light of this, it said the near-term outlook is “difficult to predict for many UK retailers”. However, with the Christmas trading and January sales periods still to come, the board said it expects to deliver a full-year outcome which will be “at least in line with market expectations”. Tarak Ramzan, founder and CEO, said: "The Quiz brand has performed well in the first half of the year, with strong year on year sales growth of 37% supporting increased profitability and a strong cash position. Active customers increased 14%, reflecting the appeal of our differentiated and value brand. "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."