Fashion retail group QUIZ (QUIZ) has reported a 17% increase in group revenue, driven by lifted social restrictions and increased demand for its products, yet, saw a 15% decrease from the previous year in revenue in the three months June, as inflation continued to eat into consumer spending power.
In FY23, EBITDA rose 21% to £6.2 million, and the company's gross margin also improved to 61.6%, attributed to successful pricing strategies and cost management. Profit before tax increased 192% to £2.3 million.
QUIZ’s online sales were up 13%, driven by an 11% increase in active customers, reflecting sustained interest in its core occasion wear offering. International revenues also saw steady growth, rising by 10% year on year.
As of March 31, 2023, QUIZ's total liquidity headroom stood at £8.3 million, up from £6.5 million the previous year.
Tarak Ramzan, Founder and Chief Executive Officer, commented: "Our FY 2023 results reflected a strong recovery in consumer demand for QUIZ's occasion-wear-led product offering, resulting in positive sales and profit growth. The past year once again demonstrated the benefits of the Group's omni-channel model as we saw encouraging revenue growth across stores and online.
“The trading environment in the opening months of the new financial year has been tough reflecting the widely publicised external economic factors impacting consumer demand”
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QUIZ’s strong performance has been underpinned by increased consumer demand following the cessation of Covid-19 lockdowns and social restrictions - however, consistent with many other fashion and clothing retailers, year-on-year growth has moderated this calendar year as inflationary pressures continue to impact consumer confidence.
On top of consumer confidence, the fashion retail sector has been victim to other unfavorable macro conditions that have persisted into 2023 - most notably disruptions to supply chains and the energy crisis - which are expected to continue to weaken the fashion retail market for the remainder of the year.
Despite this, GfK’s Consumer Confidence Index improved by another three points in June, the fifth monthly improvement in a row, and up 24 points from January 2023. Inflationary pressures are still seeing points in the minus, but the steady upward trajectory does show some promise.
Near-term economic challenges may impact the fashion retailer's profits, but, the strength of its brand and the group's omnichannel business model should provide a solid basis for future growth.
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