Quiz engages advisors after ‘disappointing’ revenues

Quiz said that the trade was positive between 1 August to 31 October, however noted that during November it “experienced a marked decline in traffic both online and in-store compared to previous months and the comparable period in the prior year”.

Online revenue during the four-month period was driven by third-party website sales. Quiz said this included increased sales with existing partners “as well as the benefit of commencing sales through the Debenhams website earlier in the year”.

Despite this, online sales fell 8.1% year on year to £7.9m.

Similarly, sales made through stores and concessions also dipped by 9.7% year on year to £12.1m.

The retailer noted that a year-on-year decline in store traffic in November led to a significant reduction in revenues, which were “modestly offset by encouraging levels of spend over the Black Friday weekend”.

However, international sales for the period climbed 11.3% year on year to £4.9m thanks to a strong performance by partners in the Middle East and the USA.

Quiz said any ongoing improvements being made to improve figures will be offset by the recent proposed changes to the National Living Wage and National Insurance arrangements, which it said will result in circa £1.7m per annum of additional costs from April 2025.

It added that sales for the eight months 30 November 2024 were behind management expectations at £52.2m, an 8.6% reduction from £57.1m the previous year.

The retailer said it has £4m of banking facilities which are scheduled to expire on 30 June 2025. It has net borrowings of £2.8m and a liquidity headroom of £1.2m as of 5 December. It stated that "given the disappointing level of revenues in November the cash headroom available to the business is less than anticipated". As a result, the group's existing banking facilities could be fully utilised in the first quarter of 2025.

The decline in revenue in November has led the board to review the group's "financing and strategic options and has engaged advisors to consider appropriate options".

It said that in the absense of either a material improvement to trading during the Christmas period, or the offer of a £1m loan by founder Tarak Ramzan being agreed, the board anticipates that additional funding will be required by the group in the first quarter of 2025.

Quiz will announce its interim results mid January 2025.

Read more: Sheraz Ramzan, who replaced his father as chief executive of Quiz in March, features on this year's Drapers Power 100 list.