TIDMQUIZ
RNS Number : 1740D
Quiz PLC
05 October 2018
QUIZ Plc
("QUIZ" or the "Group")
Trading Update
QUIZ, the omni-channel fast fashion brand, announces a trading
update for the for the six-month period to 30 September 2018 ("H1
2019" or the "period").
Group revenue increased by 19% to GBP66.7m (H1 2018: GBP56.1m)
despite challenging external trading conditions. The Group's
performance reflects continued progress across each of the QUIZ
brand's distribution channels as shown below.
Year-on-year
H1 2019 H1 2018 growth
---------- ---------- -------------
UK stores and concessions GBP35.1m GBP32.3m +9%
Online GBP20.0m GBP13.8m +44%
International GBP11.6m GBP10.0m +16%
Total GBP66.7m GBP56.1m +19%
========== ========== =============
Sales in the Group's UK standalone stores and concessions
increased by 9% to GBP35.1m in H1 2019 (H1 2018: GBP32.3m). Sales
were particularly strong through this channel during the Summer
months, however the Group experienced a lower sales performance
across its stores and concessions during September reflecting less
footfall.
As previously reported, further to House of Fraser's entry into
administration and the selective acquisition of assets by Sports
Direct International plc, the Group will provide GBP0.4 million in
the six months to 30 September 2018 in relation to outstanding
debtor balances and other potential costs.
Online revenue increased by 44% to GBP20.0m in H1 2019 (H1 2018:
GBP13.8m) reflecting investment in our online platform, effective
marketing and the appeal of our ranges. In line with our strategy
and as anticipated, the Group generated strong online growth
through QUIZ's own websites where sales increased by 70%
year-on-year. Online sales through the Group's own websites carry a
higher margin than online sales through third-party websites.
Online sales through third-party websites were at a similar
level compared to H2 2018. This performance was behind our
expectations and declined during the second quarter of the
financial year. We are working closely with our third-party online
partners to try to address this trend during the second half.
The QUIZ brand continues to grow across its target international
markets with the international sales increasing by 16% to GBP11.6m
in H1 2019 (H1 2018: GBP10.0m) largely underpinned by growth in our
international franchise operations. The Group is pleased with the
development of sales in the USA at this early stage and the benefit
of franchises opened in other international markets in the previous
year, along with the revenues generated from the three standalone
Spanish stores which opened last Autumn.
Gross margin for the period is expected to be in line with the
Board's expectations.
The Board anticipates that, as a result of lower than expected
sales through third-party online partners in the second quarter of
the financial year, the performance of our UK stores and
concessions during September and the provision against the
outstanding House of Fraser debt, EBITDA for H1 2019 will be not
less than GBP5.5m, being GBP1.5m lower than its previous
expectations. In addition, the Board has taken the prudent
assumption that should the trend in online third-party sales
continue during the second half of the financial year, Group
revenue for the full year to 31 March 2019 would be lower than
current market expectations at approximately GBP138m (FY 2018:
GBP116.4m) and the Group's EBITDA for FY 2019 would to be in the
region of GBP11.5m.
Commenting on trading, Tarak Ramzan, Chief Executive Officer,
said:
"QUIZ has delivered further good growth during the period
despite challenging external trading conditions.
I am pleased to say that our new QUIZ X TOWIE ranges have been
well received and the most recent trading week has seen an
improving trend following a very challenging September in the
UK.
Although online sales through our third-party partners have been
disappointing and will impact the Group's performance for the full
year, the changing mix towards increased own-website sales will
support profitability growth moving forward.
The continued growth of the QUIZ brand in combination with our
well-invested infrastructure and flexible business model continue
to underpin the Board's confidence in the Group's long-term
prospects."
The Group intends to announce its Interim Results for the six
months to 30 September 2018 on 27 November 2018.
---
Market abuse regulation
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
Enquiries:
QUIZ plc Via Hudson Sandler
Tarak Ramzan, Chief Executive Officer
Gerry Sweeney, Chief Financial Officer
Sheraz Ramzan, Chief Commercial Officer
Panmure Gordon
(Nominated Adviser and Sole Broker)
Ben Thorne / Alina Vaskina / Atholl Tweedie
(Corporate Finance)
Erik Anderson (Corporate Broking) +44 (0) 207 886 2500
Hudson Sandler LLP (Public Relations) +44 (0) 207 796 4133
Alex Brennan quiz@hudsonsandler.com
Sophie Lister
Nelly Akpaka
About QUIZ
QUIZ is an omni-channel fast fashion brand, specialising in
occasion wear and dressy casual wear.
QUIZ delivers a distinct proposition that empowers its fashion
forward customers to stand out from the crowd.
QUIZ's buying and design teams constantly develop its own
product lines, ensuring the latest glamorous looks at value prices.
This fast, flexible supply chain, together with the winning formula
of style, quality, value and speed-to-market has enabled QUIZ to
grow rapidly into an international brand with more than 300
standalone stores, concessions, franchise stores, wholesale
partners and international online partners in 20 countries. The
Group currently operates 71 standalone stores and 158 concessions
in the UK.
QUIZ operates through an omni-channel, fast fashion business
model, which encompasses online sales, standalone stores,
concessions, international franchises and wholesale
arrangements.
To download images please visit:
http://www.quizgroup.co.uk/media-download-centre/
For further information:
https://www.quizclothing.co.uk/
http://www.quizgroup.co.uk/
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END
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