Quiz revenue up 30% to £116m amid online success

Shares of Glasgow-based fashion firm Quiz rose about 4% after it said it increased revenue in line with expectations by 30% to £116.4 million in the year ended March 31, 2018.

In a trading update, Quiz said year-on-year online revenue soared 158% to £30.6 million and UK stores and concessions rose 12% to £64.6 million.

“The Quiz brand continues to benefit from the group’s omni-channel model with continued expansion in the UK and targeted international markets …” said Quiz.

“The rapid growth in online revenues reflects the continued benefits of the increased and effective marketing spend undertaken during the year and the broadening of our overall product ranges which includes the successful launch of our Curve and Bridal ranges.

“The group’s online revenues reflect sales made through Quiz’s own websites, as well as through a number of third party websites.

“Sales growth through third party websites has been very strong, albeit that these sales incur higher costs to service due to the payment of commission.

“International sales have grown further with the opening of new standalone stores in Spain and Ireland as well as new franchise stores across established markets.

“Sales growth in the group’s UK standalone stores and concessions was achieved in approximately equal parts from a strong like-for-like performance and through new store and concession openings.

“During the year, the group opened five new standalone stores and seven new concessions.

“Subsequent to the year end, the group opened a new standalone store in Bluewater.

“Two standalone stores and five concessions closed during the year.

“Whilst gross margins achieved during the year were in-line with expectations, the business has incurred operating costs slightly higher than originally planned.

“This partially arose from the earlier than anticipated investment in a number of central functions including our buying, merchandising and marketing teams.

“This recruitment complements the investments made in expanding our distribution centre and strengthening our IT resources during the year.

“We are pleased that we have achieved our growth targets for the year and are confident that the business has the foundations for strong future growth and increased profitability.”

Quiz intends to announce its final results for the year ended March 31, 2018, on June 5.

Quiz CEO Tarak Ramzan said: “We are delighted to have successfully completed our first financial year since our IPO in July.

“This strong performance reflects the growing strength of the Quiz brand and the continued growth across each of our sales channels and target markets.

“We look forward to expanding the Quiz brand as a global fast-fashion destination for customers who want the latest looks at outstanding value with initiatives such as the launch of own language international websites and the continued expansion of our product range.

“We are confident that the Quiz brand’s distinct USP, strong customer connection and fast-fashion credentials provides a strong foundation for delivering future growth.”