Recently floated multichannel retailer Quiz has announced that profits are expected to be lower than previously anticipated for the year.
Sales to third-party retailers and sites were poorer than expected the brand said in a statement to the London Stock Exchange.
In a statement Quiz said: ”In addition, the board has taken the prudent assumption that should the trend in online third-party sales continue during the second half of the financial year, group revenue for the full year to 31 March 2019 would be lower than current market expectations at approximately £138m (2017/18: £116.4m) and the group’s EBITDA for FY 2019 would to be in the region of £11.5m.”
Despite the expected slowdown in profits, total sales for Quiz stood at £66.7m for the first half of 2018/19, up 19% on the previous year. Online sales rose 44% to £20m, UK stores and concessions were up 9% to £35.1m, and international sales increased 16% to £11.6m
Quiz chief executive Tarak Ramzan said: “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.”