Fashion retailer Quiz issues second profit warning

Fashion retailer Quiz has seen its share price fall by more than 29% this morning after issuing its second profit warning in three months. Following a “challenging” Christmas period, Quiz said it expected profits of £8.2m for the year to March 2019 – down from the £11.5m it predicted in October. Forecast revenue is also down, from £138m to £133m. At the time of writing, Quiz’s share price was down 29.3% to 25.1p, mirroring the 25% drop it experienced after its October profit warning. The company said the retail environment had been challenging in recent months, particularly in November, and sales were “below expectations”. It added that activity picked up at the end of November, with revenue up 8.4% in the six weeks from 25 November to 5 January, compared with the same period last year. Online revenue was up 34.1% and revenue from its own website was up 50.8%, while its standalone stores saw a rise of only 1.6%. Tarak Ramzan, chief executive of Quiz, said: “Against the backdrop of challenging trading conditions over recent months, Quiz has delivered further revenue growth over the Christmas period driven by the performance of our own website. “However, the growth and the margin achieved have been below our initial expectations and, consequently, the board considers it appropriate to revise its sales and profit expectations for the current year. “We remain confident about Quiz’s long-term potential as an omnichannel fashion brand with a clear customer focus. Management’s utmost priority remains achieving further growth for the business and improving profitability in the future.” To send feedback, e-mail karl.tomusk@egi.co.uk or tweet @karltomusk or @estatesgazette Photo: Robert Perry/REX/Shutterstock