Womenswear retailer Quiz has revealed dwindling sales and plummeting profits for the six months to 30 September.
Group revenue was down 5% year on year to £63.3m, and its underlying EBITDA dropped 54% to £2.7m.
The retailer plunged into the red with a loss before tax of £6.8m – largely the result of a one-off £7m cost for the impairment of store assets and onerous lease provisions.
The drop in revenue was blamed on a fall in store spending, which declined 11% to £31.3m. Online sales remained flat at £20m, and international sales grew by 3% to £12m.
Quiz improved its gross margin for the period to 61.7%, compared with 59.3% in the first half, and increased its active customer base by 31% to 648,000.
Founder and CEO Tarak Ramzan stressed that action to improve the retailer’s performance was ongoing.
He said: “While it is disappointing to report a decline of profits year on year, management are focused on implementing the actions identified further to the group’s business review conducted earlier in 2019. We are pleased to report progress improving gross margins and reducing costs across the business, and will look for further improvements to develop our omnichannel offering.”
He also flagged the strong performance of two collaborations with reality TV star Sam Faiers as helping to drive new customer acquisition and sales.