Scottish clothing retailer Quiz has seen its shares plunge after it warned it faced a bigger than expected loss this year as inflationary pressures weigh on sales in the key Christmas trading period.
Glasgow-based Quiz told investors that sales for the two months to November 30 including the Black Friday period were behind management expectations at £14.1 million. That was down around 12% on the £16m recorded in the same period last year.
The company said the widely reported cost of living and inflationary pressures have impacted customer demand.
While there are weeks left of the “important” Christmas trading and January sales periods, Quiz appears to expect conditions to remain tough.
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“Given the shortfall in demand experienced in recent months and the potential for pressures on consumer demand to continue impacting across the sector, the Board currently anticipates that full year revenues will be approximately 6-8% lower than current market expectations,” said chief executive Tarak Ramzan.
He added: “As a Result, the Board anticipates reporting a loss before taxation for the year materially larger than previous expectations.”
Shares in Quiz fell around 14% in morning trading on the London Stock Exchange.
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