Clothes retailer Quiz ups outlook and expects first profit in three years

The business said that it expects to have made a profit of about £500,000 in the year to the end of March before tax.

This would be the first time in three years that the business managed to become profitable.

In the year ending March 2019 it made a £600,000 profit, but it has made losses of £3 million and nearly £10 million in the years since.

The news came as Quiz upped its revenue forecast for the year.

It said that the good momentum that it had seen over Christmas had continued through the last three months.

“This encouraging momentum was achieved across both the group’s store and concession portfolio as well as its e-commerce website, and resulted in like-for-like revenues broadly consistent with those generated in the 2019 financial year, prior to the impact of Covid-19.

As a result revenue is expected to hit £78 million, ahead of expectations, the business said.

It said that margins in the last quarter also managed to mirror their 2019 levels.

“This was driven by strong full-price sell-through of Quiz’s trademark occasion-wear and dressy casualwear products in response to the increased prevalence of social occasions such as weddings, and holidays compared to the previous year,” it said.

The business said it was holding cash of £4.2 million, measured in net terms.

“Encouraged by the positive performance delivered during the year, which highlights the strength and awareness of the Quiz brand and the growing customer demand for its trademark dressy and occasionwear offering, the board is confident in the group’s continued profitable revenue growth,” the company said.