QUIZ Clothing has reported a 12 per cent rise in revenue to £130.9 million for the year ended March 31, driven by online sales, as it noted developments at Debenhams.
The Glasgow-based fashion group said it remains on course to report underlying profits of £4.5m for the year, having warned in March earnings would be lower because of the effects of discounting on margins.
However, the firm noted the position of Debenhams, now owned by its lenders after a pre-pack administration deal this week, which it said was responsible for nearly a quarter of its revenue through more than 100 concessions - representing most of its concessions in the UK.
The trading update from Quiz reported “good growth online and across international markets”.
READ MORE: Profit warning wipes £20m off Quiz’s valuation
Online revenue rose by 34% to £41m, and international revenue was up by 8% to £23m.
Shares rose over 20% at 21p, with the market capitalisation sitting at £21.6m, up £1.6m from the value in March when the firm logged its warning, and when its share price halved from 32.1p to 16.1p as a result, leading its market capitalisation to then drop from £39.9m to £20m.
Chief executive Tarak Ramzan said then that the board would 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”.
READ MORE: Online sales help clothing firm Quiz post 30% turnover hike
The results of the review are due in June when its full-year results will also be posted.
The womenswear firm also said it would move to “mitigate the effects of slower than anticipated growth” this year.
The figures signal a turnaround in changing fortunes since Quiz floated with a placing price of 161p valuing the business at £200m in 2017.
“The growth in International sales reflects continued growth from our franchise business and the impact of opening three standalone stores in Spain during the previous year.
“The group’s UK stand-alone stores and concessions revenue benefited from the opening of three new standalone stores and the relocation of two stores into larger refurbished units in the financial year. As part of our active management of our retail portfolio, two stores closed in the year.
“We note the recent announcement from Debenhams plc that whilst they have entered into administration the underlying operating companies continue to trade as normal with suppliers expected to be unaffected.
“Quiz operates 108 Debenhams concessions in the UK and 11 in the Republic of Ireland and sells its product through the Debenhams website.
“Revenues from these activities represented 23% of overall revenues generated during 2019.
“We look forward to continuing to work productively with Debenhams going forward."
READ MORE: Quiz shares slam into reverse after profits warning
It added: “The board previously noted that it is undertaking a thorough review of all aspects of the business with a view to mitigating the effects of slower than anticipated growth during the year.
“We will report the findings from this review when we announce our final results for 2019 on June 11, 2019.”
The company, owned by Mr Ramzan and his family, describes its offering as “fast fashion” and it now has 300 stand-alone stores, concessions, franchise stores, wholesale partners and international online partners.
Quiz, which employs about 1,350 in the UK and Ireland, was originally founded by Mr Ramzan in 1993.
The company slipped into administration in 2009 but Mr Ramzan was able to buy back most of it back in a pre-pack deal.
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