Womenswear retailer blames discounting for second profit downgrade in three months
Quiz has issued its second profit warning in just over three months, as the womenswear retailer’s woes continue following a weaker than expected Christmas.
The company said heavy discounting meant its main measure of profits for the 2019 financial year would be £8.2m, 29% lower than the £11.5m it expected when it cut its forecasts in October.
Revenues for the full year to 31 March 2019 will be also be lower than current market expectations, at £133m, down from forecasts of £138m, Quiz said.
Shares slumped by more than 24% on Friday to 27p. The share price has now fallen by more than 80% since July, when it hit a high of 205p.
Quiz’s profit downgrade comes amid a challenging time for the British retail industry, which is struggling with weaker demand from consumers, prompted in part by Brexit uncertainty, as well as rising costs and intense competition.
Retailers in 2018 endured their worst Christmas since the financial crisis, with British Retail Consortium figures showing that total sales growth dropped to zero in December for the first time since 2008, with all areas of the high street hit by a fall in sales except food.