Quiz has warned annual losses will be ‘materially’ greater than previously forecast after a weak Black Friday trading weekend failed to offset a slump in sales.
The womenswear brand said annual sales will come in 6 to 8 per cent lower than expected after revenues fell £14.1million behind forecasts across October and November.
Quiz told investors its chair Peter Cowgill, who left JD Sports in a cloud of controversy in 2022 after 18 years as chief executive, will launch a strategic review of the business, the findings of which it will report in the first quarter of 2024.
Quiz shares fell 13.98 per cent to 6p in early afternoon trading on Tuesday, bringing one-year losses to around 65 per cent.
The fast fashion womenswear brand saw sales fall £14.1million behind its internal forecasts across October and November
Quiz gave little detail on the ‘comprehensive’ strategic review, but said it would start immediately and ‘will evaluate a broad range of options to maximise shareholder value’.
The company told investors Black Friday sales failed to boost trading, with online sales 20 per cent lower in the past two months, and UK stores and concessions down 5.5 per cent.
In a statement, the firm, said: ‘Sales in the Black Friday period in our UK stores were marginally below the previous year on a like-for-like basis.
‘There was a sharper drop in online revenues through the Quiz website which represents a disappointing shortfall across this important trading period.’
The firm posted a £1.5million loss before tax in the six months to 30 September, against profits of £1.8million a year ago.
Sales fell 14.4 per cent, with its online operations down nearly 22 per cent, and an 11 per cent drop across its UK stores and concessions.
Tarak Ramzan, founder and chief executive of Quiz, said: ‘This has been a challenging period for many retailers, and we have not been immune to the widely publicised macro headwinds impacting consumer demand.’
In July, the retailer reported a pre-tax profit of £2.3million for the year to 31 March, but warned at the time of ‘tough’ trading conditions ahead as shoppers come under pressure from high inflation.
Ramzan added: ‘Given the prolonged period of challenging trading we believe it is prudent to examine a range of options to maximise shareholder value.’
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