Fast fashion retailer Quiz has returned to profit in its latest financial year, benefiting as events and occasions gradually returned to normal in the wake of Covid-19.
The retailer, which specialises in clothes for social occasions, was hit hard by pandemic restrictions that effectively shut down those occasions. Since the last UK Covid-19 lockdown ended last April, the retailer has steadily seen demand increase, both online and in its stores.
Now it says its strong performance shows that its omnichannel business model is critical to its success and that it will now focus on sales from both its own stores and own websites, having reduced the number of third-party concessions and sites that it trades through.
Quiz today reported revenues of £78.4m in the year to March 31 2022. That’s 97% up from the £39.7m it reported a year earlier. Sales via its own website lifted by two-thirds while active customer numbers rose by 74%. At the bottom line, Quiz reported a pre-tax profit of £0.8m, up from a loss of £6m a year earlier.
In the first quarter of its current financial year, to June 30, Quiz has reported sales of £27.3m. That’s 62% higher than the same time last year. Online sales of £9.5m are 58.2% higher than last time, while sales of £13m from UK stores and concessions are 79.1% ahead. International sales, of £4.8m, are 34.2% up on last time. Demand, says Quiz, has been particularly strong for holiday wear.
Quiz founder and chief executive Tarak Ramzan says the performance was “very encouraging”. “This outcome,” he says, “reflects increased demand for Quiz’s product offering and was supported by the decisive actions we have taken in recent years to transform the business and successfully leverage the group’s omnichannel model and infrastructure.
“We are very pleased with the strong uplift in active customers and sales growth through our own website, which is now supported by a flexible and profitable portfolio of stores and concessions.”
He adds: “Despite the well-documented challenges across the retail sector, we remain encouraged by customer demand for the Quiz brand, with sales up by 62% in the year to date. Whilst there are significant levels of uncertainty impacting the consumer right now, we are confident that Quiz is well positioned to continue to deliver against its strategy and drive long-term, sustainable and profitable growth.”
At the end of the year the retailer had 62 shops in the UK and five in the Republic of Ireland, following a store restructuring during the pandemic. It has reduced its concession numbers over the last year as well as sales via third-party websites. Store rents are now mostly linked to the revenues that its stores generate, over an average lease term of 15 months.