Shares of embattled Glasgow-based fashion firm Quiz fell another 17% on Wednesday after it published a Christmas trading update for the seven-week period from November 17, 2019, to January 4, 2020.
Quiz said its overall online sales fell 14.8% in the period.
“As noted in the group’s interim results on 4 December 2019, we were pleased with sales across the important Black Friday week,” said Quiz.
“Since that date, however, sales have softened relative to expectations and, as a result, group revenue in the period decreased by 9.3% … “
Quiz shares fell another 17% to around 15p — having collapsed from around 200p in July 2018.
Quiz added: “Online revenues comprise sales through Quiz’s own websites as well as a number of third-party websites.
“Quiz continued to deliver growth through its own Quiz websites with revenues increasing by 5.9% in the period supported by improved full-price sell-through with less promotional activity than the prior year.
“As previously reported, over the past 12 months, the group has terminated unprofitable revenue streams through a number of third-party website partners.
“As a result of these actions as well as weaker sales through some of the group’s remaining partners, revenues generated from third party online partners declined significantly against the prior year.
“This impacted the group’s overall online sales which decreased in the period by 14.8%.
“As previously indicated, during the group’s current financial year Quiz’s stores and concessions have experienced a reduction in footfall compared to the prior year.
“This trend continued during the period resulting in revenue from the group’s UK standalone stores and concessions decreasing by 7.0% …
“The Quiz balance sheet remains strong with net cash of £10.7m as at 4 January 2020 (5 January 2019: £12.3m).”
Quiz CEO Tarak Ramzan said: “Whilst the trading backdrop has remained challenging, it is disappointing to report a decline in revenues in the period.
“We were pleased that revenues through our own websites grew in the period with less promotional activity than in the prior year, which underpins our confidence in the health of the Quiz brand.
“We have continued to make good progress in improving gross margins and reducing costs in line with the strategic priorities set out by the board last year.
“With our cash position, we remain confident that we can improve our financial performance and grow revenues.
“We have a clear customer focus and a flexible model that the board continues to believe will enable Quiz to adapt to the changing retail environment and return to profitable growth in the medium-term.”