Quiz sees sales jump higher – but says shoppers may be reining in their spending
The fashion group said revenue growth eased over August and September as shoppers react to the cost-of-living crisis.
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Your support makes all the difference.Fashion chain Quiz has cheered a jump in half-year sales – but said the cost-of-living crisis has begun to dampen shopper confidence.
The group said while sales surged by a “marginally” better-than-expected 37.2% to £49.4 million over the six months to September 30, revenue growth has eased over the past two months.
It said it was a “trend consistent with other fashion retail businesses as inflationary pressures began to impact consumer confidence”.
Despite this, the group still saw store and concession sales soar by 48.2% to £24.6 million as it benefited from the return to normality on UK high streets since pandemic restrictions ended.
Whilst it remains uncertain what impact the current cost-of-living pressures will have on consumers' disposable income and on their demand for Quiz products over the remainder of the group's financial year, management remain confident that the product proposition and commitment to providing glamorous looks at value prices will continue to appeal
It said like-for-like sales were consistently higher than before the pandemic across its 62 shops and 62 concessions.
Online sales rose by almost a third, up 28.8% to £16.1 million, though the group said efforts to boost shopper basket values had been partly offset by a rise in clothes sent back.
The group also hailed a rise in profitability over the first half thanks to stronger demand for full-price items, while it also said it had been able to recover rising costs as inflation pressures ramped up.
Quiz kept its full-year guidance unchanged, but said it will be dependent, as ever, on the crucial Christmas season and noted the uncertainty over the outlook for shopper confidence.
It said: “Whilst it remains uncertain what impact the current cost-of-living pressures will have on consumers’ disposable income and on their demand for Quiz products over the remainder of the group’s financial year, management remain confident that the product proposition and commitment to providing glamorous looks at value prices will continue to appeal.”