Quiz has posted a fall in sales over the festive period across stores and online against what boss Tarak Ramzan has described as a “challenging” trading backdrop.
The fashion retailer posted a 9.3% decline in group revenue in the seven weeks to January 4.
Quiz’s sales across its store and concessions fell 7% during the period – which the business attributed to ongoing declines in footfall – while online sales declined 14.8% year on year.
This decline was exacerbated by the retailer’s decision to slash unprofitable third-party supply partnerships early this year with online marketplaces such as Zalando.
The retailer said that “as a result of these actions as well as weaker sales through some of the group’s remaining partners, revenues generated from third-party online partners declined significantly against the prior year”.
Despite this poor performance, Quiz said it “has been able to largely offset the impact on profitability of the lower than anticipated sales” and its overall performance in the year to date remains “broadly in line” with the board’s expectations.
Chief executive Tarak Ramzan said: “Whilst the trading backdrop has remained challenging, it is disappointing to report a decline in revenues in the period. We were pleased that revenues through our own websites grew in the period with less promotional activity than in the prior year, which underpins our confidence in the health of the Quiz brand.
“We have continued to make good progress in improving gross margins and reducing costs in line with the strategic priorities set out by the Board last year. With our cash position, we remain confident that we can improve our financial performance and grow revenues.
“We have a clear customer focus and a flexible model that the board continues to believe will enable Quiz to adapt to the changing retail environment and return to profitable growth in the medium term.”
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