Fashion retailer Quiz has reported a slump in full-year profits but maintained it can “return to sustainable profitable growth”.
Quiz posted a 97% slide in pre-tax profits to £0.2m in the year to March 31, when sales rose 12% to £130.8m.
Performance was hit by heaving discounting in tough trading conditions, which hit margins. Increased costs associated with obtaining and servicing online customers also contributed to the fall in profits.
Online revenue increased 34% to £41m, representing 31.4% of group revenue, and the active online customer base increased 56% to 576,000.
Quiz founder and chief executive Tarak Ramzan said: “Despite the challenges faced during the period, Quiz’s focus has remained as strong as ever on delivering great products at outstanding value, thereby strengthening our brand’s positive reputation among a growing customer base.
“As announced in March, the board and senior management team have carefully reflected on our business, strategy and prospects to ensure that we are able to navigate what remains a volatile trading environment and restore profitable growth.
“We have concluded this review process with sharpened focused and a clearer vision of what is required to ensure that Quiz succeeds in a dynamic retail sector and achieves its strategic objectives.
“The Quiz brand continues to gain momentum with a growing customer base. While trading conditions have remained challenging in the year to date, the board remains confident that underpinned by our flexible business model and an increasing online focus, the group can return to sustainable profitable growth.”
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Quiz profits wiped out as discounting takes toll