Quiz has reported that its half-year losses have more than doubled, warning it could exhaust its remaining cash by early 2025.
The fashion retailer attributed its ailing financial situation to “disappointing revenues” in the lead-up to Christmas, leaving its cash headroom “less than previously anticipated”. The business will therefore require additional funding by early next year.
In its latest update published 27 December, Quiz revealed its pre-tax losses had risen significantly, from £1.5 million to £4.7 million, for the six months ending 30 September. Sales dropped 7.5% to £39.1 million, due to a “marked decline in traffic both online and in-store” last month.
Between 1 August and 30 November, revenues fell by £1.5 million year-on-year to £24.9 million. Demand improved slightly in December due to online sales remaining steady compared with the previous year; however, in-store sales continued to lag. The company said that December’s overall performance remains below management’s expectations and has not offset November losses.
Quiz’s Chief Financial Officer departed in October after eight years at the business.
The retailer, which currently operates 62 UK stores and 47 concessions, said earlier in the month that it had seen a “marked decline” in demand in-store and online in November, a key revenue period.
Quiz currently holds £500,000 in liquidity headroom, down from £1.2 million earlier this month.
The retailer is seeking shareholder approval to delist from the London Stock Exchange and transition to a private company, with the vote slated for 8 January.
In August, Quiz revealed it had fallen into a loss, as sales declined due to ongoing cost-of-living pressures on customers.
Quiz reported a pre-tax loss of £6.7 million for the year ending 31 March, compared to a £2.3 million profit the previous year, according to the delayed update. Revenue also fell by 10.6% to £82 million during the period.
At the time, Chief Executive Sheraz Ramzan described the performance as “disappointing” but doubled down on the company’s commitment to its turnaround strategy.
Ramzan stated: “Whilst these results are disappointing – in part driven by the challenging macroeconomic conditions impacting many retailers – we have a clear plan to improve performance by leveraging our key strengths as an omni-channel retailer with a distinctive brand.”
