5th Sep 2018 09:32
LONDON (Alliance News) - Womanswear retailer Quiz PLC on Wednesday warned it will take a GBP400,000 hit from the collapse of UK department store chain House of Fraser.
In his annual general meeting statement, Chairman Peter Cowgill said the company "historically" operated in 11 House of Fraser store concessions and sold its products on the chain's website.
After House of Fraser entered into administration earlier in August and was acquired by Mike Ashley's Sports Direct International PLC for GBP90 million, Quiz is expecting to provide GBP400,000 to cover outstanding debtor balances and other potential costs.
However, the retailer added that it was pleased with its performance for the year-to-date and with the "positive customer response" to its summer's products range. Quiz's financial began on April 1.
The company said it continued to invest in marketing activities as well as on developing its own website and app.
"In line with our strategy and as anticipated, we are now generating stronger growth through Quiz's own websites compared to third-party websites, which experienced exceptional growth last year following the launch of partnerships with Zalando and Next PLC," Cowgill added.
The company said that stores and concessions have traded well in the year to date, despite softer footfall during April. Quiz opened two new standalone stores in Oxford and Kent which have performed "encouragingly since opening".
Cowgill said: "Despite an uncertain trading environment, we believe that the group, underpinned by the strength of the Quiz brand as well as its flexible, omni-channel model, remains well positioned for continued strong growth.
"At this stage, and with important trading periods in the second half of the financial year still to come, the board remains confident that Quiz is on track to deliver market expectations for the full year."
The company will provide a trading update in relation to its interim performance on October 11 ahead of publish its half-year results in November.
Quiz shares were trading down 0.5% at 166.67 pence each.
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