7th Mar 2019 09:50
LONDON (Alliance News) - Shares in Quiz PLC lost half their value on Thursday as the retailer cut its revenue and earnings guidance after experiencing a "significant shortfall in sales".
Shares in the omni-channel fashion retailer were trading down 52% at 15.50 pence each following its announcement Thursday morning. The stock now has lost 88% of its value over the past 12 months.
Quiz said that since the beginning of January, it continued to operate in a challenging consumer backdrop, in which people were more cautious with regards to spending.
As a result, it recorded lower sales that previously expected, with total revenue down 1.7% since the beginning of January. Online revenue was up 16% but an 11% drop in UK standalone store revenue offset that improvement.
"Furthermore, there has been a requirement to apply higher than anticipated discounts to clear excess stock," Quiz added.
Consequently, Quiz cut its revenue guidance for its financial year ending March 31 to GBP129.0 million from a previously expected GBP133.0 million.
Adjusted earnings before interest, taxes, depreciation and amortisation are now expected at GBP4.5 million, down from a previous forecast of GBP8.2 million.
A year ago, Quiz's revenue came in at GBP116.4 million while adjusted Ebitda was GBP12.7 million.
Given the recent trading performance, Quiz's board launched a review of the business with a view to mitigating the effects of changed trading conditions. The firm expects to report the result of the review with its annual results in June.
"Whilst the board remains confident in the strength and appeal of the Quiz brand, as demonstrated by our continued sales growth online, this has been a highly disappointing trading period for the group," Chief Executive Officer Tarak Ramzan said.
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