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Quiz has revealed that like-for-like revenues in the first quarter were 15% lower than the comparable period the previous year as demand fell over the period.
The fashion brand attributed this decline to a 12% decrease in its UK stores and concessions revenues, which reflects the decline in traffic in store relative to the previous year.
Sales through its website only reached £7.4m compared to a high of £10m in 2022, with sales through third party websites totalling £3.5m compared with £4.3m last year.
While progress was made in the period to increase the average transaction value, the decline in web traffic and an increase in return rates year-on-year also impacted revenues.
As a result, overall revenues in the year to 31 August have continued to be lower than the previous year, as well below management’s prior expectations.
As of today (19 September), the retailer operates 64 stores in the UK, having opened three new stores since 1 April 2023. This included three relocations and one closure.
According to the board, it has taken the “prudent assumption” that, should the current trend in revenues continue during the second half of the financial year, FY24 revenues would be approximately 6% to 7% lower than current market expectations of £91.7m.
Quiz says this will have a knock-on impact on its profitability, and whilst it is anticipated that a positive EBITDA would be generated, if revenues were at these levels, it would be expected to result in a loss before taxation for the year of no more than £1.5m.
The group is said to be retaining a tight control on costs and is “proactively reviewing all aspects of the business” to mitigate the impact of the current economic and trading environment.
