Shares of Glasgow-based fashion firm Quiz plc fell as much as 40% after the company published an update on its trading for the five months between April 1, 2023, and August 31, 2023, showing that revenue fell 15.3% to £37 million.

“On 5 July 2023, the group announced its annual results for the year ended 31 March 2023 noting that further to the challenging trading conditions and strong prior year comparatives, like-for-like revenues in the first quarter of the financial year had been 15% lower than the comparable period in the previous year,” said Quiz.

“Since then, inflationary cost pressures have continued to impact consumer confidence and demand for Quiz’s products.

“As a result, overall revenues in the year to date have continued to be lower than the previous year and below management’s prior expectations.”

In its outlook, Quiz said: “Whilst it is too early to determine with certainty, the board has taken the prudent assumption that should the current trend in revenues continue during the second half of the financial year, FY 2024 group revenue would be c. 6 to 7% lower than current market expectations (FY 2023: £91.7m).

“This will have a knock-on impact on the group’s profitability and whilst it is anticipated that a positive EBITDA would be generated, if revenues were at these levels, it would be expected to result in a loss before taxation for the year of no more than £1.5 million (EBITDA FY 2023: £6.2m and FY 2023 profit before taxation of £2.3m).

“Whilst the impact of cost of living pressures on consumers’ disposable income persists, management continues to retain a tight control on costs and is proactively reviewing all aspects of the business to mitigate the impact of the current economic and trading environment on the group and identify potential strategies to drive additional revenue growth.

“Longer-term, the board remains confident that QUIZ’s product proposition and commitment to providing glamorous looks at value prices will continue to appeal.”