Quiz PLC Trading Update (5476P)
11 Ottobre 2019 - 8:00AM
UK Regulatory
TIDMQUIZ
RNS Number : 5476P
Quiz PLC
11 October 2019
QUIZ Plc
("QUIZ" or the "Group")
Trading Update
QUIZ, the omni-channel fashion brand, announces a trading update
for the six-month period to 30 September 2019 ("H1 2020" or the
"period"). Overall, the Group's trading has been broadly in line
with the Board's expectations against the backdrop of a difficult
UK retail environment.
Group revenue in the period decreased by 5% to GBP63.3m (H1
2019: GBP66.7m). Gross margin for the period is expected to be in
line with the Board's expectations at approximately 61%.
Online revenues grew by 7% to GBP20.0m (HI 2019: GBP18.7m), once
adjusted for unprofitable revenue streams terminated during the
year. Total online revenues in the previous period were GBP20.0m,
consistent with the current year. The Group has continued to
experience solid growth through its own QUIZ websites, with sales
increasing by 12% year-on-year. This reflects continued investment
in the Group's online proposition and product range, as well as
effective marketing
As has been widely reported across the sector, and as previously
stated by QUIZ, the trading conditions on the UK high street have
remained very challenging. The Group's stores and concessions have
experienced a reduction in footfall during the period against the
prior year, resulting in weaker than initially anticipated sales.
Sales in the Group's UK standalone stores and concessions decreased
by 11% to GBP31.3m in H1 2020 (H1 2019: GBP35.1m). The rate of
decline experienced has reduced in recent weeks. We continue to
focus on improving the performance of our physical retail outlets
and continue to believe in their importance to our omni-channel
model and we are actively managing our stores and concessions to
ensure their profitability. The average lease length on our stores
remains relatively low at 26 months and we continue to appraise the
economics of each store as leases come up for renewal.
Our international sales comprise stores and concessions in the
Republic of Ireland and Spain as well as franchise operations in a
number of countries. International sales increased by 3% to
GBP12.0m in H1 2020 (H1 2019: GBP11.6m) reflecting growth in
revenue from the franchise operations and Spanish stores. This
growth is partially offset by a decline in sales in Irish stores
and concessions consistent with the pattern experienced in the
UK.
At 30 September 2019, the Group had net cash of GBP7.1m (31
March 2019: GBP7.5m).
In line with the previously announced outcome of the Board's
business review undertaken earlier in the year, management have
continued to take actions to achieve of the objectives of this
review including improving the gross margin generated, reducing
costs across the business, addressing the decline in footfall in
stores and concessions, and the optimisation of QUIZ's omni-channel
model. Further to this we remain confident that gross cost savings
of between GBP2m to GBP3m are achievable in the medium term.
Commenting on trading, Tarak Ramzan, Chief Executive Officer,
said:
"Overall, the Group's trading performance in the first half has
been broadly in line with the Board's expectations despite the
difficult UK trading environment. Sales growth through QUIZ's
websites has continued, reflecting the investment in our product
range and marketing initiatives.
Whilst trading conditions are expected to remain challenging in
the near term, the Board remains confident that underpinned by
QUIZ's flexible business model and an increasing online focus, the
Group can return to sustainable profitable growth in the medium
term."
The Group intends to announce its Interim Results for the six
months to 30 September 2019 on 4 December 2019.
Enquiries:
QUIZ plc Via Hudson Sandler
Tarak Ramzan, Chief Executive
Officer
Gerry Sweeney, Chief Financial
Officer
Sheraz Ramzan, Chief Commercial
Officer
Panmure Gordon
(Nominated Adviser and Sole Broker)
Alina Vaskina / Joanna Langley
(Corporate Finance)
Erik Anderson (Corporate Broking) +44 (0) 207 886 2500
Hudson Sandler LLP (Public Relations) +44 (0) 207 796 4133
Alex Brennan / Nelly Akpaka quiz@hudsonsandler.com
Notes:
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
About QUIZ:
QUIZ is an omni-channel fashion brand, specialising in occasion
wear and dressy casual wear. QUIZ delivers a distinct proposition
that empowers its fashion forward customers to stand out from the
crowd.
QUIZ's buying and design teams constantly develop its own
product lines, ensuring the latest glamorous looks at value prices.
This fast, flexible supply chain, together with the winning formula
of style, quality, value and speed-to-market has enabled QUIZ to
grow rapidly into an international brand with more than 300
standalone stores, concessions, franchise stores, wholesale
partners and international online partners in 22 countries. The
Group currently operates 73 standalone stores and 171 concessions
in the UK.
QUIZ operates through an omni-channel, fast fashion business
model, which encompasses online sales, standalone stores,
concessions, international franchises and wholesale
arrangements.
To download images please visit:
http://www.quizgroup.co.uk/media-download-centre/
For further information:
https://www.quizclothing.co.uk/
http://www.quizgroup.co.uk/
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END
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