Fast fashion multichannel retailer Quiz Clothing expects to return to “sustainable profitable growth” despite persistent tough trading.
In a trading update issued this morning, Quiz announced that challenging trading conditions “persisted over the summer months”, resulting in a reduction of in-store footfall.
However, non-executive chairman Peter Cowgill remained confident that “the Group can return to sustainable profitable growth in the medium term” by “increasing [its] online focus”.
In the financial year to date, Quiz benefitted from sales growth through its own ecommerce sites.
Pippa Stephens, retail analyst at GlobalData said: ”To justify its midmarket price points, Quiz must improve product quality or lower its prices to be in line with PrettyLittleThing and Boohoo, as it is currently neither better quality or cheaper. Improved consistency and relevance in trend adoption is needed. This could be better communicated by utilising social media, brand ambassadors and celebrity collaborations.
”Quiz should also reduce its reliance on occasionwear, an area where rivals are stronger, and increase its mix of smart-casual styles – allowing it to steal footfall from Miss Selfridge, New Look and H&M. In addition, further digital investment is necessary such as Quiz’s website, which needs updating to be slicker and more visually appealing, to stop the company from being overshadowed by online pureplays.”
The update follows a 97% drop in profits to £200,000 for the 52 weeks to 31 March. Group revenue grew by 12% to £130.8m, which it said had been driven by sales growth across all channels. Senior leadership told Drapers in June that it will seek to save an additional £3m in costs as it battles falling profits.
Quiz issued two profit warnings this year, following a “significant shortfall in sales” in the first two months of 2019.
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A further trading update for the six months to 30 September will be announced on 11 October.