Clothing brand Quiz sees Christmas trade rise despite Omicron variant
Clothing brand Quiz sees Christmas trade soar despite Omicron variant hurting partywear sales
- Strong stores and concessions helped offset a £700m drop in online revenue
- Quiz said the Omicron variant cut customer levels in the second half of December
- Stricter Covid restrictions across Britain led to many Christmas parties being cancelled
Fast-fashion retailer Quiz has revealed massive growth in retail sales over the holiday season, despite Covid restrictions affecting partywear sales.
The company said total revenues rose by a fifth to £8.8m in December as the lack of store closures pushed sales in UK outlets and concessions up by around £2million from the previous year to £5m. ,2 million.
This helped offset a £700m drop in online purchases following the cessation of certain third-party partnerships, although the board noted the website’s sales were in line with forecasts.
Holiday time: Quiz said total revenue rose by a fifth to £8.8m in December as the lack of store closures helped sales in UK outlets and concessions soar to £5.2m
The international company’s revenues, which include five stores and 15 concessions in Ireland, also rose 11 percent to £1.5 million, even as the country was hit by rising coronavirus cases.
Quiz acknowledged that the spread of the Omicron variant “significantly reduced” customer base in the second half of the month and led many consumers to return party wear to stores.
Fashion sellers this time hoped for bustling trade in the run-up to the Christmas and New Year’s holidays after last year’s very muted celebrations when people were banned from mixing indoors with those outside their homes and propped up the bubble.
But this year they struck again after the British government introduced ‘Plan B’ measures in England and authorities in Wales and Scotland reintroduced very strict social rules.
As of Boxing Day in Wales, all nightclubs were closed, outdoor events capped at 50 and up to six people could meet in pubs, cinemas and restaurants.
Scotland introduced slightly fewer restrictions in late December, but only 500 people could attend an outdoor event such as a football match, while no more than 100 people could attend an unseated indoor event.
Refund: Quiz acknowledged that the Omicron variant ‘significantly reduced’ customer levels in the second half of December and led many consumers to return party wear to stores
Together, these curbs caused a greater number of people to cancel social events and businesses to avoid the traditional office Christmas party, eroding the demand for formal outfits.
Nevertheless, Quiz bosses in Glasgow said they were “satisfied with the performance achieved over the period given the challenging trading conditions.”
They believe that as long as the coronavirus does not cause ‘further substantial disruption’, the full-year results will live up to their expectations.
Quiz’s latest trading update comes a month after it released interim results showing revenues more than doubled in the six months to the end of September to £36.2 million as a result of the easing of trade restrictions.
Within UK stores and concessions, sales rose more than 250 per cent to £16.6 million, but online commerce also increased by £2.6 million, even after the UK government authorized the reopening of non-essential shops in mid-April. stores.
Founded in 1993 by Tarak Ramzan, Quiz developed into a major British fashion brand online and in high street and was listed on the London Stock Exchange’s Alternative Investment Market in 2017.
It has partnered with reality TV stars from shows such as The Only Way is Essex, Geordie Shore and Love Island, and has seen its shares rise about 125 percent in the past 12 months.
However, their value remains more than 90 percent below what it was three years ago amid successive profit warnings, Brexit uncertainty, tougher competition and concerns about the treatment of the staff employed by its suppliers.