Quiz shares dive after poor Christmas brings second profit alertComments Off on Quiz shares dive after poor Christmas brings second profit alert
Shares in fast-fashion retailer Quiz tanked on Friday after a woeful Christmas caused it to warn on profits for the second time in four months.
Quiz, set up in 1993, said it now expects to notch up profits of £8.2 million this year, down from £11.5 million expected, making it the latest High Street sufferer after bike seller Halfords and trainers business Footasylum also warned on profits this week.
The shares fell 24%, or 8.5p, to 27p. This is despite an 8.4% increase in revenues for the six weeks to January 5. Its online sales were strong too, up 34%, albeit these are less profitable for retailers.
Finance chief Gerry Sweeney struck a bullish tone: “It’s disappointing that we’ve fallen short of expectations but our belief is that the brand is strong and we can rebuild the margins.”
The business blamed the alert on slower sales of its dresses and tops in its own stores and concessions, especially in November. Aggressive discounting by rivals and fewer customers buying were part of the problem too, it said.
Sweeney added there are no imminent plans to shut any of its own 71 stores although “we do have the flexibility to close them if that’s what needs to happen”.
Quiz, which has 169 concessions, is one of the hundreds of businesses owed money by department store chain House of Fraser, which collapsed last year. It took a hit of £400,000, not included in the profit downgrade.