Quiz warns on profits as cost of living hits consumers

On the assumption that a similar sales pattern continues, full-year revenue would come in between 6% and 7% lower than market expectations, hitting profitability.

Sales at Quiz stores and concessions are down 11.5% and online down 23.8% year on year. 

The retailer said: “Whilst it is too early to determine with certainty, the board has taken the prudent assumption that should the current trend in revenues continue during the second half of the financial year, group revenue would be 6% to 7% lower than current market expectations.

“This will have a knock-on impact on the group’s 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.

“Whilst the impact of cost-of-living pressures on consumers’ disposable income persists, management continues to retain 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 on the group and identify potential strategies to drive additional revenue growth.

“Longer-term, the board remains confident that Quiz’s product proposition and commitment to providing glamorous looks at value prices will continue to appeal.”