Re­tailer QUIZ has ques­tions to an­swer

Oc­ca­sion wear spe­cial­ist’s earn­ings alert has left the stock firmly out of fash­ion

Shares - - CONTENTS -

SHARES IN QUIZ (QUIZ:AIM) have col­lapsed fol­low­ing a profit warn­ing (5 Oct) that trig­gered size­able earn­ings down­grades.

Slipped out at 2.38 p.m. on a Fri­day af­ter­noon, the fast fash­ion brand warned of a £1.5m first half EBITDA (earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion) short­fall and ma­te­ri­ally down­graded full year sales and profit ex­pec­ta­tions.

Glas­gow-based QUIZ’s profit warn­ing re­flects an un­fore­seen slump in sales from third party plat­forms, namely Next (NXT) and Za­lando, and a poor Septem­ber in its stores and con­ces­sions as foot­fall soft­ened.

More pre­dictable was the poor show­ing from con­ces­sions with em­bat­tled Deben­hams (DEB) and House of Fraser.

En­cour­ag­ingly, TOWIE ranges have been well-re­ceived, QUIZ is see­ing very strong growth through its own web­sites, which carry higher mar­gins, and the brand is grow­ing in­ter­na­tion­ally.

‘We still be­lieve QUIZ is a good, pro­gres­sive brand with a loyal fol­low­ing but clearly this is a back­ward step and the shares will likely tread wa­ter un­til the growth pro­file starts to reap­pear,’ laments stock­bro­ker Peel Hunt.

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