Quiz back on track in latest year, Q1 stronger, but inflation could bite

By

Sandra Halliday

Published
Jul 5, 2022

Quiz Clothing’s results for the year to the end of March showed a “strong revenue recovery and return to profitability” on Tuesday with the company appearing to be back on track. Q1 has also started well, although it’s cautious for the rest of the year.

It's been a tough few years for the business, even before the pandemic, although the global health crisis exacerbated its problems given that it specialises in clothing for going out.

But for the latest year, it was able to report revenue of £78.4 million, up from £39.7 million a year earlier.

Its gross profit was £47.3 million, up from £21.2 million, and its profit before tax was £0.8 million, a positive swing from a loss of £9.6 million 12 months ago. The company reported EBITDA of £5.1 million, a big improvement on the loss of £4.9 million in the previous period.

The group revenue rise came on the removal of social restrictions that “led to an increased demand for our product offering as well as a reduction in the amount of time that stores and concessions were closed”.

And it saw higher levels of full-price sales that resulted in an increase to the gross margin at 60.3%, consistent with the gross margin generated in the year prior to the pandemic, and up from 53.4% in FY 2021.

The company reported strong online growth, with a 66% increase in sales through its own website, and it said active customers increased 74% on the prior financial year in line with demand for its core occasionwear offering.

The benefit of store restructuring undertaken during the previous year was reflected in a positive contribution from its physical stores and it also saw a recovery in international revenues with a 96% increase year on year.

The store estate comprised 62 locations in the UK and five in the Republic of Ireland at the end of the year. And with a lesser focus on concessions, numbers were reduced from 119 to 69 during the year.  

Encouragingly, it also added that revenues in the three months to 30 June increased 62% on the prior year and “were consistent with the levels generated prior to the Covid-19 disruption on a like-for-like basis”. It’s achieved sales of £27.3 million in the quarter, although part of the uplift was accounted for by easy comparisons with lockdowns a year ago.

During the quarter, online sales rose 58.2% to £9.5 million, UK stores and concessions rose 79.1% to £13 million, and international sales rose 34.2% to £4.8 million.

But it sees “potential for sales later in the year to be impacted by the effect of the inflationary environment and increases in the cost of living on consumer confidence”.