Fashion retailer Quiz has announced strong results for the year ending 31 March, with revenue increasing by 17% to £91.7 million. Despite higher operating expenses and the absence of government grants, the company’s profit before tax soared by 191.5% to £2.3 million, and EBITDA rose by 20.8% to £6.2 million.

The lifting of social restrictions played a crucial role in Quiz’s success, as it led to increased demand for its dressy clothing lines. The retailer also experienced higher levels of full-price sales, resulting in a gross margin increase from 60.3% to 61.6%, surpassing pre-pandemic levels. Furthermore, the firm’s strong performance can be attributed to cost controls that grew at a slower rate than revenue growth.

Key highlights from the year include a 13% increase in sales through Quiz’s own website and an 11% rise in active customer numbers. The company also saw positive performance from its physical stores, thanks to previous restructuring efforts. Additionally, international revenue saw a 10% boost. Currently, Quiz operates 62 locations in the UK and six shops in the Republic of Ireland.

However, the first quarter of the new financial year, ending in June, witnessed a decline in revenues of 15% to £23.2 million. This decrease is attributed to challenging year-on-year comparisons and the impact of macroeconomic uncertainty and inflationary pressures on consumer demand. Notably, online revenues dropped by 20% to £7.6 million, UK store revenue fell by 15.4% to £11 million, and international revenue decreased by 4.2% to £4.6 million. Despite this decline, gross margins remained consistent with the previous year.

Looking ahead, Quiz remains focused on growing revenues from its own stores and website and has already opened three new locations in the UK since the end of the year. However, the company foresees a challenging trading environment for the remainder of the year, albeit with easier year-on-year comparisons in the second half. CEO Tarak Ramzan expressed optimism about the brand’s clear and unique position in the market and its ability to resonate with a wide range of customers. He also highlighted the group’s focus on online growth through its website and the increase in sales and active customers throughout the year.

Useful links:
1. Quiz Clothing Official Website
2. Retail Week Article on Quiz’s Q1 Sales Drop