Quiz ends first half slightly ahead of revenue expectations

Fashion brand Quiz reported a 37.2% improvement in total revenue in its first half on Monday, to £49.4m - ahead of its own expectations amid positive trading across all of its channels.

The AIM-traded firm said its revenue growth in the six months ended 30 September benefited from demand recovering further to the removal of Covid-related social restrictions.

Its year-on-year revenue growth rate moderated as the period progressed during August and September, which Quiz said was “consistent” with other fashion retail businesses as inflationary pressures began to impact consumer confidence.

The gross margin benefited from stronger demand for full-price products, and was ahead of comparable periods in recent years.

Quiz put that down to its success in recovering higher product costs which, along with other costs, were subject to inflationary pressures through the period.

Looking at its cash position, the group said it was focussed on strengthening its balance sheet.

It said the positive trading in the period, combined with a “favourable” net movement in working capital, contributed to a £6.2m improvement in the total liquidity headroom available to the group since 31 March.

As at 30 September, the company had total liquidity headroom of £12.7m, being a cash balance of £9.2m and £3.5m of undrawn bank facilities.

The board said the £3.5m of bank facilities available would expire on 30 June 2023, with no financial covenants applying to them.

“Whilst it remains uncertain what impact the current cost of living pressures will have on consumers' disposable income and on their demand for Quiz products over the remainder of the group's financial year, management remain confident that the product proposition and commitment to providing glamorous looks at value prices will continue to appeal,” the board said of the firm’s outlook.

It said the group's full-year results to 31 March would be in part dependent on trading during the key Christmas period, but were expected to be in line with market expectations.

“The board is pleased with the strong growth recorded across all channels during the period which supports the group's omni-channel business model.

“It remains confident that the brand will continue to increase its appeal and looks forward to achieving continued profitable revenue growth.”

Quiz said it would announce its interim results for the six months ended 30 September in December.

At 0834 BST, shares in Quiz were down 0.22% at 11.5p.

Reporting by Josh White at Sharecast.com.