‘Fast fashion’ firm Quiz back in black as lockdown eases

Quiz, the Glasgow-headquartered “fast fashion” retailer, expects to have swung to a modest pre-tax profit over the financial year just ended for the first time since 2019.

The group, whose clothing ranges are popular with people attending parties and formal events, said that it expects to have made a profit of about £500,000 in the year to the end of March, before tax. This would be the first time in three years that the business managed to become profitable.

In the year ending March 2019 it made a £600,000 profit, but it has made losses of £3 million and nearly £10m in the years since.

For the year to the end of March 2022, Quiz expects to generate earnings before interest, taxes, depreciation, and amortisation (Ebitda) of no less than £4.3m.

News of an expected return to profitability came as the firm upped its revenue forecast for the year.

It said that the good momentum that it had seen over the festive period had continued through the last three months.

The group added: “This encouraging momentum was achieved across both the group’s store and concession portfolio as well as its e-commerce website, and resulted in like-for-like revenues broadly consistent with those generated in the 2019 financial year, prior to the impact of Covid-19.

“As a result of this strong performance, total [full-year] 2022 group revenue is expected to be ahead of expectations at approximately £78m.”

Bosses said they were pleased with the gross margin generated across the year, with the gross margin recorded in the last quarter consistent with the same period in 2019.

“This was driven by strong full-price sell-through of Quiz’s trademark occasionwear and dressy casualwear products in response to the increased prevalence of social occasions such as weddings, and holidays compared to the previous year,” the firm noted.

The business said it was holding cash of £4.2m, measured in net terms, comprising a cash balance of £5.6m offset by a £1.4m drawdown of available bank facilities. It has a total of £3.5m of bank and credit facilities available to it which are scheduled for renewal in September.

Looking ahead, the group said: “Encouraged by the positive performance delivered during the year, which highlights the strength and awareness of the Quiz brand and the growing customer demand for itstrademarkdressyandoccasionwear offering, the board is confident in the group’s continued profitable revenue growth.”

The company expects to publish its results for the year ended 31 March in July.

In January, Quiz reported solid Christmas trading despite the cancellation of social events amid tighter Covid restrictions north of the Border.

The group said total group sales in December rose by 20 per cent to £8.8m, compared with a year earlier.

Meanwhile, total group revenues in the nine months to December 31, 2021 totalled £61m, which represented an 88 per cent increase on the £32.4m generated in the equivalent period in 2020 when trading was hit hard by Covid lockdown measures.

The performance during December was driven by a 64 per cent increase in revenues generated across Quiz’s UK store and concession portfolio.