Quiz PLC on Monday reported a solid rise in annual revenue, as the fashion brand benefited from a strong recovery following the removal of Covid-related restrictions, but it warned on the outlook for consumer demand.

Shares in Quiz dropped 8.7% to 14.10 pence on Monday morning in London.

In the financial year ended March 31, the Glasgow-based firm reported revenue of £91.7 million. This represented an increase of 17% against the £78.4 million achieved the previous year.

Quiz said, ‘consistent with many other fashion and clothing retailers’, year-on-year growth moderated in the latter months of the financial year as inflationary pressures began to impact consumer confidence. As a result, like-for-like revenues in February and March 2023 were lower than the previous year.

Nonetheless, the company said revenue in the final three months of financial 2023 was ‘broadly consistent’ with those generated in the comparable period in financial 2019, the last period unaffected by Covid.

Gross margins for the year were also in line with management expectations and consistent with those recorded in the previous year, Quiz said.

As a result, the firm said it now anticipates to report increased profit in financial 2023, with pretax profit seen at no less than £2.0 million. This would be more than double the £800,000 reported in financial 2022, if achieved.

Looking further forward, Quiz cautioned that the ‘widely reported and significant pressures’ on consumer spending seen in recent months are expected to continue into the new financial year. This, it said, may impact consumer demand over the coming months and therefore reduces the company’s visibility for financial 2024.

Quiz expects to publish its results for the year ended March 31 in July.

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