Quiz PLC Trading Update (1010S)
March 07 2019 - 2:01AM
UK Regulatory
TIDMQUIZ
RNS Number : 1010S
Quiz PLC
07 March 2019
QUIZ Plc
("QUIZ" or the "Group")
Trading Update
QUIZ, the omni-channel fashion brand, announces an update on
trading during the period between 1 January 2019 to 28 February
2019 ("the Period") and its expectations for the financial year
ended 31 March 2019 ("FY 2019").
During the Period, the uncertain consumer spending backdrop has
remained challenging for QUIZ. As a result, the Group has recorded
a significant shortfall in sales compared to the Board's prior
expectations. Furthermore, there has been a requirement to apply
higher than anticipated discounts to clear excess stock.
QUIZ has continued to increase sales online during the Period
with Group online revenue increasing by 16.2%. However, this growth
has been offset by an 11.1% decrease in revenue from the Group's UK
standalone stores and concessions. Consequently, Group revenue for
QUIZ decreased by 1.7% in the Period against the comparable period
last year.
The Group's Christmas Trading Update on 11 January 2019 provided
guidance for revenue and profits for FY 2019 which, at that time,
reflected the most recent sales trends through our online, UK
stores and concessions sales channels in addition to the impact of
additional available retail space compared to the previous year.
The Board previously anticipated that revenues for FY 2019 would be
approximately GBP133.0m, which would have represented growth in
sales in the final quarter of 9.2% compared to the previous year
resulting in anticipated EBITDA* of GBP8.2m.
Given the significant shortfall in sales experienced in the
final quarter of FY 2019 to date, and should this trend continue
throughout March 2019, the Group anticipates revenues for FY 2019
to now be approximately GBP129.0m. It is also expected that the
increased level of discounting will have a material impact on gross
margins generated in the final quarter of FY 2019. The Board now
anticipates that the Group's EBITDA* will be approximately GBP4.5m
for FY 2019.
The QUIZ balance sheet remains strong with net cash of GBP8.9m
as at 5 March 2019. Inventory continues to be carefully managed
with current stock levels similar to the previous year.
Given the Group's recent trading performance, the Board is
instituting a thorough review of all aspects of the business with a
view to mitigating the effects of changed trading conditions. We
expect to report findings from this review at the time of the
preliminary announcement of full year results for FY 2019, which is
expected in June 2019.
Tarak Ramzan, Chief Executive Officer, commented:
"Whilst the Board remains confident in the strength and appeal
of the QUIZ brand, as demonstrated by our continued sales growth
online, this has been a highly disappointing trading period for the
Group. As a result, the Board will be reviewing all aspects of the
business over the coming months to ensure that we can deliver the
Group's long-term potential despite the changing consumer backdrop
and challenging trading conditions."
* Excluding the previously announced write-off of GBP0.4m debt
arising from the administration of House of Fraser.
* * * * *
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)
Ben Thorne / Alina Vaskina (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
Sophie Lister
Nelly Akpaka
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.
QUIZ operates through an omni-channel, fast fashion business
model, which encompasses online sales, standalone stores,
concessions, international franchises and wholesale arrangements.
As at 7 March 2019, QUIZ had 71 stores and 169 concessions in the
UK.
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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