Fashion retailer Quiz joins other retailers as it warns of sales slump and ditches guidance on profits
- Quiz saw a ‘substantial’ fall in traffic online and in stores, which shut on 22 March
- It warned closures will have an impact on its full-year profits to the end of March
AIM-listed fashion retailer Quiz has warned that sales and margins will be ‘materially’ below expectations this month as it closed down all its shops as the UK went into lockdown.
The fast-fashion company, which targets young women and features a collection by the reality TV star Sam Faiers, said it saw a ‘substantial’ drop in traffic online, as well as in stores, which shut on 22 March.
It warned closures will have an impact on its full-year profits to the end of March. And because it remains uncertain at this stage how bad the impact of the coronavirus crisis will be, it dropped its forward guidance for the next year.
Quiz features a collection by the reality TV star Sam Faiers (pictured)
It comes as a raft of retailers, including JD Sports and Next, warned of a big sales downturn as they are forced to remain close during the coronavirus pandemic.
The retailer said this year’s profits will also be impacted by debtor balances, as well as the ‘adequacy of inventory provisions and the requirement for further non-cash store fixture and lease provisions’.
It said they were taking steps to preserve cash, including ‘eliminating non-essential spend, postponing capital projects, substantially reducing stock intakes and deferring payments wherever possible’.
It added that that prior to the COVID-19 outbreak, performance had been in line with expectations.
But Quiz has been struggling like many other fashion retailers. It saw sluggish sales over Christmas, and falling footfall at its in-store and concession sites over the last year.
Quiz shares rose 4.7 per cent to 5.50p in morning trading on Thursday.