Quiz issued a profit warning for the year, sending shares in the clothing retailer downwards.
The fashion company said in a trading update that sales between January 1 and March-end had witnessed a ‘significant shortfall’. This was attributed to an ‘uncertain consumer spending backdrop’.
Whilst sales were boosted by an increase in online revenue of 16.2%, Quiz noted that this was offset by an 11.1% decrease in revenue from standalone stores and concessions.
As a result, group revenue during the period fell by 1.7%, compared to the a year ago.
Consequently, Quiz said it now expects full-year profits of £4.5 million, as opposed to the £8.2 million originally anticipated.
Tarak Ramzan, Chief Executive Officer, commented:
“Whilst the Board remains confident in the strength and appeal of the QUIZ brand, as demonstrated by our continued sales growth online, this has been 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.”
Alongside weaker sales, brands such as Quiz are also faces a backlash over the ethics of so-called fast fashion, with many questioning its sustainability.
Moreover, traditional retailers are facing increased competition from their online only rivals, with brands such as PrettyLittleThing, Boohoo and ASOS (LON: ASC) all dominating the market.
Quiz was founded back in 1993 in Scotland. It has over 250 shops across the UK, Europe and Asia.
Shares in the retailer (LON:QUIZ) are currently trading -52.96% as of 10:28AM (GMT), as the market reacts to the trading update.