QUIZ shares plunge on profit warning

quiz

Shares in QUIZ have plummeted after the fashion retailer issued a profit warning.

Shares tumbled 25.5 percent in afternoon trading after the group said it would miss market forecasts after taking a hit from the House of Fraser collapse.

Full-year earnings are expected to come in at £11.5 million, down from the previous expectations of £15.5 million.

Quiz previously sold items in 11 House of Fraser stores and on the department store’s website.

Chief executive Tarak Ramzon said: “Although online sales through our third-party partners have been disappointing and will impact the Group’s performance for the full year, the changing mix towards increased own-website sales will support profitability growth moving forward.”

“The continued growth of the QUIZ brand in combination with our well-invested infrastructure and flexible business model continue to underpin the Board’s confidence in the Group’s long-term prospects.”

Sales are expected to be hit this year. Whilst previous estimates forecast sales totalling £150.5 million, the new expectation is £138 million.

As well as QUIZ, retailers including Ted Baker have been affected by the House of Fraser collapse.

Ted Baker shares fell earlier this week as the group posted a 3.2 percent fall in pre-tax profits. The House of Fraser collapse cost the retailer £600,000.

David Bernstein, the non-executive chairman, said: “We have a very clear strategy for the continued expansion of Ted Baker as a global lifestyle brand across both established and newer markets. Our flexible business model ensures that our customers have multiple channels to engage with the brand.”

“Our growing e-commerce business, underpinned by stores that showcase the brand, mean that we are well positioned to deal with the structural changes in an evolving retail environment and continue Ted Baker’s long-term development.”

Shares in Ted Baker (LON: TED) are trading at 2.056,00 (1635GMT).

Shares in QUIZ (LON: QUIZ) are trading down 36.72 percent at 93,50 (1709GMT).

 

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.