Fashion chain Quiz anticipates profit for first time in three years
High street clothes-seller Quiz said it anticipates the first year of profit since 2019, after heavy pandemic losses.
The beleagured chain forecast a profit before tax of some £500,000 in the year to the end of March. It last made a profit of £600,000 in the year ending March 2019.
Total full year group revenue is now expected to be ahead of expectations at approximately £78.0m.
Following the update, the London-listed firm’s share price surged by an astounding 40 per cent on Friday morning.
The retailer has reported a rebound in sales as shoppers hunted for party-wear and office outfits, after Covid measures were eased earlier this year.
“Encouraged by the positive performance delivered during the year, which highlights the strength and awareness of the Quiz brand and the growing customer demand for its trademark dressy and occasion wear offering, the board is confident in the group’s continued profitable revenue growth,” a trading update outlined.
Quiz said its gross margin recorded in the last quarter was consistent with the same period in 2019.
Like many of its high street rivals, Quiz has had a tough two years with pandemic-related closures contributing to a pre-tax loss of £9.6m for the year ended 31 March 2021.
Last year, the retailer said it had secured an “economically viable store portfolio,” of 66 sites, after a restructuring led to the closure of 16 stores.
Quiz also said it had taken “decisive actions” in reducing its cost base by 47 per cent.