Fashion chain Quiz notches up hike in half-year sales

FASHION retailer Quiz has reported a hike in half-year sales and profits despite “challenging” market conditions and a hit from the collapse of House of Fraser.

Quiz said pre-tax profits increased 4% to £3.8m over the six months to September 30 as group revenue rose 19% to £66.7m. It comes despite a £400,000 provision for the House of Fraser administration and £1m of costs related to the company’s AIM listing and restructuring.

Underlying earnings rose 11% to £5.6m in the first half, but this is still lower than previously expected, as flagged up in a profit warning from the group last month.

Quiz alerted to a profits blow in October due to poor sales from online partners and the House of Fraser impact, which sent shares in the group tumbling 37% on the day.

Chief executive Tarak Ramzan said: “Quiz has continued to deliver good revenue growth in the first half of the financial year despite challenging external market conditions.

“This performance was driven by further expansion across each of the brand’s distribution channels with particularly strong sales generated online through Quiz’s websites.”

Revenue from the chain’s stores and concessions in the UK increased 9% over the half-year to £35.1m.

International sales rose 16% to £11.6m.

Online sales jumped 44% to £20m and now represent 30% of group sales, having been bolstered by an 89% surge in active online customers to 495,000 over the half-year.

Despite the double-digit online sales growth, the company said sales via third party websites were below its expectations and were at a similar level to a year earlier.

On an underlying basis, pretax profits fell 11% to £4.2m due to the lower-than-anticipated sales and higher costs related to personnel and marketing.