UK’s Quiz warns on revenue after tepid Black Friday sales; shares drop

Date:

Dec 5 (Reuters) – Clothing retailer Quiz on
Tuesday warned its annual revenue would miss market estimates
after weak ‘Black Friday’ sales and sluggish consumer demand,
prompting a strategic review and sending its shares sharply
lower.

Retailers in the country saw tepid growth in November
despite Black Friday deals, as the ongoing cost-of-living
squeeze prompted shoppers to rein in spending on non-essential
items, the British Retail Consortium said.

The food and drink and personal care product sales remain
steady but spending luxury spending has staggered.

Quiz, which specializes in occasion and casual party wear
and operates in the UK and Ireland, said sales for the two
months to Nov. 30 including Black Friday, totalled 14.1 million
pounds ($17.79 million), which was below its expectations.

Shares in the company dropped to a more than 2-1/2-month low
of 6 pence in early trading, becoming the top loser across
London stocks.

For the year ended March 31, 2024, Quiz expects revenue to
be 6-8% lower than market estimates of 86.4 million pounds,
according a company-compiled consensus.

The firm also said it would launch a strategic review of the
business, led by non-Executive Chairman Peter Cowgill, who was
ousted as longtime chairman from sportswear giant JD Sports
in 2022. Findings from the review are expected to be
announced in the first quarter of 2024, Quiz said.
($1 = 0.7925 pounds)

(Reporting by Eva Mathews in Bengaluru; Editing by Rashmi Aich)

Share post:

Popular

More like this
Related