TIDMQUIZ
RNS Number : 9439Z
Quiz PLC
15 January 2020
The following amendment has been made to the 'Christmas Trading
Update' announcement released on 15 January 2020 at 7:00am under
RNS No 8050Z.
The below Trading Update covers the seven-week period from 17
November 2019 to 4 January 2020.
All other details remain unchanged.
The full amended text is shown below.
QUIZ Plc
('QUIZ' or the 'Group')
Christmas Trading Update
Proactive actions to manage margins and enhance cost
efficiencies offset softer Christmas sales
QUIZ, the omni-channel fashion brand, announces a trading update
for the seven-week period from 17 November 2019 to 4 January 2020
("the Period").
As noted in the Group's Interim Results on 4 December 2019, we
were pleased with sales across the important Black Friday week.
Since that date, however, sales have softened relative to
expectations and, as a result, Group revenue* in the Period
decreased by 9.3%.
Online revenues comprise sales through QUIZ's own websites as
well as a number of third-party websites. QUIZ continued to deliver
growth through its own QUIZ websites with revenues increasing by
5.9% in the Period supported by improved full-price sell-through
with less promotional activity than the prior year. As previously
reported, over the past 12 months, the Group has terminated
unprofitable revenue streams through a number of third-party
website partners. As a result of these actions as well as weaker
sales through some of the Group's remaining partners, revenues
generated from third party online partners declined significantly
against the prior year. This impacted the Group's overall online
sales which decreased in the Period by 14.8%.
As previously indicated, during the Group's current financial
year QUIZ's stores and concessions have experienced a reduction in
footfall compared to the prior year. This trend continued during
the Period resulting in revenue from the Group's UK standalone
stores and concessions decreasing by 7.0%.
Gross margins in the Period were broadly in line with
expectations. Inventory continues to be carefully managed with
current levels lower than the previous year.
The QUIZ balance sheet remains strong with net cash of GBP10.7m
as at 4 January 2020 (5 January 2019: GBP12.3m).
Consistent with the previously announced outcome of the Board's
business review, management have remained firmly focussed on taking
actions to improve gross margins, enhance efficiencies and reduce
costs across the business. Given these actions and the benefits
derived during the year-to-date, the business has been able to
largely offset the impact on profitability of the lower than
anticipated sales in the Period. As a result, the Group's overall
performance in the year-to-date remains broadly in line with the
Board's expectations.
Tarak Ramzan, Chief Executive Officer, commented:
"Whilst the trading backdrop has remained challenging, it is
disappointing to report a decline in revenues in the Period. We
were pleased that revenues through our own websites grew in the
Period with less promotional activity than in the prior year, which
underpins our confidence in the health of the QUIZ brand.
"We have continued to make good progress in improving gross
margins and reducing costs in line with the strategic priorities
set out by the Board last year. With our cash position, we remain
confident that we can improve our financial performance and grow
revenues. We have a clear customer focus and a flexible model that
the Board continues to believe will enable QUIZ to adapt to the
changing retail environment and return to profitable growth in the
medium-term."
* The sales in the period and prior year comparable period
exclude international franchise sales and certain third-party
online partners given they are wholesale in nature and therefore,
can fluctuate from month to month.
* * * * *
Notes: This announcement contains inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014.
Enquiries:
QUIZ plc Via Hudson Sandler
Tarak Ramzan, Chief Executive Officer
Gerry Sweeney, Chief Financial Officer
Sheraz Ramzan, Chief Commercial Officer
Panmure Gordon (Nominated Adviser and
Sole Broker)
Alina Vaskina / Joanna Langley (Corporate
Finance)
Erik Anderson (Corporate Broking) +44 (0) 207 886 2500
Hudson Sandler LLP (Public Relations) +44 (0) 207 796 4133
Alex Brennan quiz@hudsonsandler.com
Lucy Wollam
About QUIZ
QUIZ is an omni-channel fashion brand, specialising in occasion
wear and dressy casual wear. QUIZ delivers a distinct proposition
that empowers fashion forward customers to stand out from the
crowd.
QUIZ's buying and design teams constantly develop its own
product lines, ensuring the latest glamorous looks at value prices.
This fast, flexible supply chain, together with the winning formula
of style, quality, value and speed-to-market has enabled QUIZ to
grow rapidly into an international brand with more than 300
standalone stores, concessions, franchise stores, wholesale
partners and international online partners. As at 4 January 2020,
QUIZ had 75 stores and 177 concessions in the UK (January 2019: 71
stores and 169 concessions).
QUIZ operates through an omni-channel, fast fashion business
model, which encompasses online sales, standalone stores,
concessions, international franchises and wholesale
arrangements.
To download images please visit:
http://www.quizgroup.co.uk/media-download-centre/
For further information:
https://www.quizclothing.co.uk/
http://www.quizgroup.co.uk/
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END
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