TIDMQUIZ
RNS Number : 3941Y
Quiz PLC
09 September 2020
9 September 2020
QUIZ Group Plc
("QUIZ" or the "Group")
Retail Store Portfolio and Trading Update
QUIZ, the omni-channel fashion brand, announces an update on its
retail store portfolio and current trading during the period
between 1 April 2020 to 31 August 2020 ("the Period").
Retail Store Portfolio
Following the Group's announcement on 10 June 2020 regarding the
completion of restructuring of its retail store portfolio (the
"Restructuring"), the Group has made progress with renegotiating
the lease arrangements with its landlords for its standalone QUIZ
stores.
Prior to the Restructuring, the Group operated 75 standalone
stores in the United Kingdom. As at 9 September 2020, the Group has
so far reopened 48 stores and anticipates reopening a total of
approximately 60 stores in the United Kingdom. Rental terms for the
reopened stores are consistent with those targeted by the Group.
They provide a flexible cost base going forward with rents payable
predominantly based upon revenues generated rather than previous
higher fixed rental arrangements. The average lease length on these
stores is 24 months.
Further to the Restructuring, the Group closed its seven stores
in the Republic of Ireland and three in Spain. As at 9 September
2020, the Group has reopened four of these stores with negotiations
continuing in relation to two other stores. The Group has decided
not to reopen any of the Spanish stores.
Trading Update
Consistent with other businesses, the COVID-19 pandemic has
significantly impacted QUIZ's sales in the Period. From late March,
the Group's stores and concessions were closed and Online
operations were suspended for two weeks in April 2020 in order to
protect QUIZ's distribution centre colleagues.
During the period, the Group has extended its casual ranges to
respond to the additional demand for this product. This is in
response to the decline in demand for occasion wear further to the
ongoing restrictions on social events.
The Group's total sales in the Period amounted to GBP12.8m, a
77% decline on the GBP55.2m revenues generated from 1 April to 31
August 2019 ("2019"). Revenues from each channel were as
follows:
1 April to 31 August
2020 2019 Change
--------------------------- ------------ ----------- -------
Online GBP8.0m GBP17.3m -54%
UK stores and concessions GBP2.9m GBP27.3m -89%
International GBP2.1m GBP10.6m -81%
--------------------------- ------------ ----------- -------
Total GBP13.0m GBP55.2m -77%
--------------------------- ------------ ----------- -------
Given the lower demand experienced in the period a higher level
of discounting has been applied with gross margins generated being
approximately 6% lower than the previous year. It is not
anticipated that this level of discounting will continue for the
remainder of the year.
As at 8 September, the Group had GBP6.1m cash available. In
addition, the Group has GBP3.5m of bank facilities available which
are currently scheduled to expire on 31 October 2020, which the
Group intends to renew.
Online
Sales through QUIZ's own websites totalled GBP4.9m (2019:
GBP8.9m), a decline of 45%. Sales have steadily improved in the
Period with August revenues being 11% lower than the previous year
which reflected the benefit of increasing the ranges of casual
product.
Sales through third party websites totalled GBP3.1m (2019:
GBP8.4m), a decline of 64%. In addition, to the factors noted
above, certain third-party sites suspended or restricted product
intake during the Period.
UK stores and concessions
Further to the Restructuring, whilst the Group opened several
stores in July the majority of the 48 reopened stores have
recommenced trading in recent weeks.
Prior to the enforced closure of non-essential stores in the UK
due to COVID-19, the Group operated 164 concessions in the United
Kingdom. Further to their closure on 22 March, concessions
progressively re-opened from mid-June. However, a number of these
concessions have not reopened and as at 9 September 2020, the Group
operates 141 concessions in the United Kingdom.
Whilst sales generated in UK standalone stores and concessions
remain below levels generated in the previous year, the Group is
encouraged by the consistent improvement in like-for-like sales in
recent weeks.
International
The Group's international partners have also been impacted by
COVID-19. Numerous outlets were closed during the period but we are
pleased to note that sales have progressively improved since they
have reopened.
Further to Debenhams' decision to close its operations in the
Republic of Ireland the number of concessions operated by QUIZ had
reduced from 23 to 11.
During the period the Group's primary customer in the United
States entered a bankruptcy process and its future remains
uncertain. The Group is actively pursuing new opportunities in the
U.S market.
The Group intends to announce its Final Audited Results for the
year ended 31 March 2020 on 27 October 2020.
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 / Lucy Wollam quiz@hudsonsandler.com
Notes:
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
About QUIZ :
QUIZ is an omni-channel fashion brand, specialising in occasion
wear and dressy casual wear. QUIZ delivers a distinct proposition
that empowers its 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 standalone stores,
concessions, franchise stores, wholesale partners and international
online partners in 22 countries.
QUIZ operates through an omni-channel 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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