Omni-channel Fashion Brand Quiz Sees 50% Share Drop

  • Quiz shares drop by 50% following sales shortfall announcement
  • Like-for-like UK sales down 11% in Q1
  • Revenue expected to be £129m, down from previous forecast of £133m
  • EBITDA anticipated at £4.5m, down from £8.2m
  • CEO Tarak Ramzan promises thorough review of business operations

Quiz, an omni-channel fashion brand, has experienced a significant decline in its shares after announcing a review of its business due to a ‘significant shortfall’ in sales. The company revealed that like-for-like sales in UK stores dropped by 11% from January 1st to February 28th, leading to a 1.7% decrease in revenue compared to the previous year. Quiz attributed this performance to uncertain consumer spending and higher-than-expected discounts needed for excess stock clearance. The board initially anticipated FY 2019 revenues at £133m with a 9.2% sales growth and EBITDA of £8.2m, but now expects revenues to be around £129m and EBITDA at approximately £4.5m due to the impact on gross margins. CEO Tarak Ramzan promises a thorough review of business operations to adapt to changing consumer habits and trading conditions.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Quiz’s financial performance, including specific numbers and quotes from the CEO, without any sensationalism or opinion masquerading as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about Quiz’s financial performance and the CEO’s response to the situation, but it lacks in-depth analysis or exploration of long-term trends or possibilities. It also does not offer actionable insights or solutions for readers.
Financial Relevance: Yes
Financial Markets Impacted: Quiz’s shares fell by 50% due to a significant shortfall in sales and decreased revenues, impacting its anticipated EBITDA.
Financial Rating Justification: The article discusses Quiz’s financial performance, the impact on its share price, and changes in revenue and EBITDA expectations, making it relevant to financial topics and markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk