Fashion chain Quiz has unveiled a return to annual profit thanks to recovering demand for party wear, but it warned that sales may suffer as the cost-of-living squeeze tightens.

The group posted underlying pre-tax profits of £788,000 for the year to March 31 against losses of £9.6 million the previous year.

Revenues nearly doubled to £78.4 million from £39.7 million the year before thanks to the end of coronavirus restrictions and with less lockdown disruption for stores and concessions.

It said revenues for the first three months of the new financial year were 62% higher and back up to levels seen before the pandemic struck.

Fashion chain Quiz has unveiled a return to annual profit thanks to recovering demand for party wear, but it warned that sales may suffer as the cost-of-living squeeze tightens.

But Quiz cautioned over the “potential for sales later in the year to be impacted by the effect of the inflationary environment and increases in the cost of living on consumer confidence”.

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Tarak Ramzan, founder and chief executive of Quiz, said: “Despite the well-documented challenges across the retail sector, we remain encouraged by customer demand for the Quiz brand, with sales up by 62% in the year to date.

“Whilst there are significant levels of uncertainty impacting the consumer right now, we are confident that Quiz is well-positioned to continue to deliver against its strategy and drive long-term, sustainable and profitable growth.”

Fashion chain Quiz returns to annual profit thanks to recovering demand for party wear