Shares in Scottish fashion chain Quiz dropped sharply as it provided a full-year trading update that showed a “challenging” last two months.
The Glasgow-based retailer reported pressures from trading conditions in February and March and there was a cautious reaction from analysts.
While sales fell in the last eight weeks as shoppers faced cost-of-living pressures, the group posted a rise in revenues for the past year.
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It warned that "significant pressures on consumer spending seen in recent months" are set to continue in the new financial year and could weigh on demand over the coming months.
Quiz reported that total group revenues increased by 17 per cent to £91.7 million for the year to March 31, despite declining at the end of the period.
The annual growth was driven by a 23% rise in revenues to £45.5m across its UK stores and concessions as more shoppers returned to the high street.
The retailer said it "remains highly confident" over the strength of the brand and held firm on profit expectations.
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The company repeated its previous guidance of achieving an improved profit before tax of at least £2m.
Analyst Tony Shiret, of Panmure Gordon, said: “February and March have been difficult with the company seeing delayed purchases and casual wear being bought more than its signature dressy fashion.”
Mr Shiret said: “We are reducing our FY1/24 estimates from £3.9m PBT to £2.8m as we believe that would still represent decent progress given the uncertainties of the current year and the difficult conditions currently being faced.”
Tarak Ramzan, Quiz chief executive, said: "The group delivered a good performance in full-year 2023, achieving revenue growth across each of its channels, reflecting the strength of Quiz's trademark dressy and occasion wear product offering."
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He also said: "This outcome, which was achieved despite the challenging market backdrop in recent months, is a strong testament to our flexible model and differentiated brand.
"Whilst the external trading environment is expected to remain challenging in the near term, we remain highly confident in the group's long-term prospects."
Quiz said: "The widely reported and significant pressures on consumer spending seen in recent months are expected to continue into the new financial year.
"The board believes these external headwinds may impact consumer demand across the Group’s sector over the coming months, reducing its visibility for full-year 2024."
Shares in Quiz closed down 22.33%, or 3.45p, at 12p.
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