5th Oct 2018 15:15
LONDON (Alliance News) - Shares in Quiz plunged Friday afternoon after the fashion retailer said its first half earning. and therefore full year revenue, will be lower than expectations.
Shares in Quiz were down 25% at 110.02 pence each.
For the six months ended September, revenue increased 19% to GBP66.7 million, from GBP56.1 million the year before, despite "challenging external trading conditions".
Sales from the company's UK stores & concessions increased 8.7% in the first half to GBP35.1 million from GBP32.3 million, with online sales increasing 44% to GBP20.0 million from GBP13.8 million.
Less footfall in September, however, led to lower sales from its stores & concessions.
The company's online sales from third-party websites was broadly flat compared to the previous half, which was below the retailer's expectations and actually declined in the second quarter.
Quiz said it is "working closely" with its third-party online partners to "address the trend".
Quiz also said, due to House of Fraser entering administration, it will provide GBP400,000 for outstanding debtor balances and other potential costs in the first half.
As a result of these issues, earnings before interest, tax, depreciation and amortisation in the first half will be GBP5.5 million. Quiz said this is GBP1.5 million lower than expectations.
The retailer has taken the "prudent assumption" its revenue for the year ending March 2019 will be GBP138 million - lower than market expectations - and Ebitda will be GBP11.5 million.
In 2018, revenue was GBP116.4 million with Ebitda of GBPGBP12.7 million.
Chief Executive Officer Tarak Ramzan said: "Quiz has delivered further good growth during the period despite challenging external trading conditions.
"I am pleased to say that our new Quiz X Towie ranges have been well received and the most recent trading week has seen an improving trend following a very challenging September in the UK.
"Although online sales through our third-party partners have been disappointing and will impact the group's performance for the full year, the changing mix towards increased own-website sales will support profitability growth moving forward.
"The continued growth of the Quiz brand in combination with our well-invested infrastructure and flexible business model continue to underpin the board's confidence in the group's long-term prospects."
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