(Alliance News) - Shares in Quiz PLC sank early Wednesday, after the clothing retailer reported "lower than anticipated" sales in the Christmas period amid footfall declines and difficult trading conditions in the UK.
Quiz shares were 10% lower on Wednesday morning in London, at 16.85 pence each.
In the seven weeks to January 4, revenue fell 9.3% from the year before, despite the company reporting that it was "pleased" with its Black Friday sales. Black Friday , which occurred later than usual in 2019 on November 29, sees retailers offer a flurry of promotional discounts.
Quiz said: "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%."
It wasn't just high street woe which Quiz reported, online sales were down 15% year-on-year during the period. This was attributed to the company ending partnerships with third-party sellers.
Quiz said: "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."
In its own websites alone, online sales were 5.9% higher year-on-year during the seven week period.
Despite the sales falls which occurred broadly across the board, Quiz said its trading in the year-to-date has been in line with internal expectations.
Cost-cutting and efficiency-boosting measures ensured Quiz has "largely offset the impact on profitability of the lower than anticipated sales" during the seven weeks. Gross margins during the period were in line with expectations, the company said.
Chief Executive 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."
By Eric Cunha; ericcunha@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
Quiz (QUIZ)