UK-based fashion retailer, Quiz, reported a decline in sales over the past two months as shoppers grappled with rising living costs. While the company’s revenues for the past year rose, Quiz noted that like-for-like revenues for February and March were lower due to what it described as “challenging trading conditions”.
The retailer also warned that the “significant pressures on consumer spending seen in recent months” were expected to continue and could impact demand in the coming months. Despite this, the company remained confident in the strength of its brand and maintained its profit expectations.
Quiz’s total group revenues increased by 17% to £91.7 million for the year ending March 31, despite declining at the end of the period. The annual growth was driven by a 23% rise in revenues to £45.5 million across its UK stores and concessions, as more shoppers returned to the high street. Quiz CEO, Tarak Ramzan, praised the company’s performance in what he described as a “challenging market backdrop”, attributing the success to Quiz’s flexible business model and differentiated brand.
Ramzan acknowledged that the external trading environment was expected to remain challenging in the near term, but expressed confidence in the company’s long-term prospects. The announcement was not received positively by investors, with shares in the company dropping by 20.4% to 12.3p in early trading on Monday.
The news from Quiz comes amid a wider struggle for UK retailers, many of whom have been hit hard by the pandemic and the subsequent economic fallout.
Inflationary pressures have also added to the difficulties, with rising costs for goods and services forcing consumers to cut back on discretionary spending. Despite these challenges, some retailers have managed to adapt to the changing environment, with online sales playing an increasingly important role in the industry’s recovery.
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