- Prachi Singh |
In its trading update for the for the six-month period to September 30, 2018, fast fashion brand Quiz said group revenue increase of 19 percent to 66.7 million pounds (87 million dollars) despite challenging external trading conditions. The company added that as a result of lower than expected sales through third-party online partners in the second quarter, the performance of its UK stores and concessions during September and the provision against the outstanding House of Fraser debt, its board anticipates EBITDA for H1 will be not less than 5.5 million pounds, 1.5 million pounds lower than its previous expectations.
Commenting on trading, Tarak Ramzan, the company’s Chief Executive Officer, said in a statement: "Quiz has delivered further good growth during the period despite challenging external trading conditions. 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."
Quiz expects full year to be lower than market expectations
In addition, the company further said 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 March 31, 2019 would be lower than current market expectations at approximately 138 million pounds (180.2 million dollars) and the group's EBITDA to be in the region of 11.5 million pounds (15 million dollars).
Sales in the group's UK standalone stores and concessions for the first half increased by 9 percent to 35.1 million pounds (45.8 million dollars). The company said, while sales were particularly strong through this channel during the summer months, 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, Quiz will provide 0.4 million pounds in the six months in relation to outstanding debtor balances and other potential costs.
Online revenue increased by 44 percent to 20 million pounds (26 million dollars). The company said, in line with our strategy and as anticipated, the group generated strong online growth through Quiz’s own websites where sales increased by 70 percent year-on-year. Online sales through third-party websites were at a similar level compared to H2 2018, behind the company’s expectations and declined during the second quarter of the financial year.
The international sales increased by 16 percent to 11.6 million pounds (15.1 million dollars) in H1 2019 driven by growth in its international franchise operations.
Picture:Quiz media centre