SHARES in women’s clothing business Quiz plummeted by more than 50 per cent this morning after the business revealed a “significant shortfall” in sales during January and February.
Chief executive Tarak Ramzan said that while the business remains confident in the “strength and appeal” of its brand, the results came at the end of a “highly disappointing trading period for the group”.
“As a result, the board will be reviewing all aspects of the business over the coming months to ensure that we can deliver the group's long-term potential despite the changing consumer backdrop and challenging trading conditions," he said.
Shares in the firm, which floated on the London Stock Exchange’s junior market in July 2017, fell from 32.1p at the close of business yesterday to 14.8p in mid-morning trading today, representing a drop of 54%.
The firm's shares are now trading 92% lower than they were at the time of the float, which achieved a price per share of 190p.
Despite this, John Moore, a senior investment manager at Brewin Dolphin, said the announcement will have come as little surprise to investors “who have been concerned about the business for some time”.
“A root-and-branch review of the business will be welcome news for investors, but significant changes will be required to make Quiz self-sufficient and able to handle shocks from the wider retail sector,” he said.
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