25% Share Tumble After Profit Warning Announcement

  • Quiz issues profit warning leading to 25% share tumble
  • Clothing retailer Quiz experiences disappointing online sales through third-party partners
  • Company loses £400,000 due to House of Fraser’s financial difficulties
  • CEO Tarak Ramzan remains confident in the brand’s long-term prospects

Clothing retailer Quiz has issued a profit warning, causing shares to drop by 25%, following the announcement that its performance was ‘behind expectations’ during the second half of the financial year. The company experienced little growth in online sales on third-party websites like Next and Zalando over the past six months. Additionally, Quiz suffered a £400,000 loss due to House of Fraser’s financial troubles. Despite these challenges, CEO Tarak Ramzan remains confident in the brand’s long-term prospects as sales in its own stores and concessions rose by 9% in the first half of the current financial year, with online revenue increasing by 44% and sales on its own website rising by 70%.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Quiz’s profit warning, the reasons behind it (such as the decline in performance during the second half of the financial year and the impact of House of Fraser’s difficulties), and the company’s CEO’s comments on the situation. It also includes specific numbers for sales growth in different areas of the business. However, there is some slight subjectivity in the phrase ‘challenging external trading conditions’, which could be seen as a personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about Quiz’s profit warning and its reasons for the decline in performance. It includes specific numbers (e.g., revenue growth, share drop, loss due to House of Fraser) and quotes from the CEO. However, it could benefit from more analysis or context on the industry trends and potential solutions for the company.
Financial Relevance: Yes
Financial Markets Impacted: Quiz shares dropped by 25%, impacting the company’s stock performance.
Financial Rating Justification: The article discusses a clothing retailer’s profit warning and its impact on the company’s share price, as well as mentioning financial difficulties faced due to House of Fraser’s collapse.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text

Reported publicly: www.retailsector.co.uk