Quiz shares rally after group announces return to FY profitability

1st Apr 2022 08:16

(Sharecast News) - Shares in Quiz surged on Friday after the fashion retailer said it expects to have returned to full-year profitability after positive sales momentum witnessed during the Christmas trading period continued through the final quarter of its financial year.

Quiz said total full-year revenues were expected to be ahead of expectations at approximately £78.0m, while underlying earnings were projected to be no less than £4.3m and pre-tax profits were pegged to be at least £500,000.

The AIM-listed firm highlighted that encouraging momentum was achieved across both its store and concession portfolio, as well as its e-commerce website, and resulted in like-for-like revenues being broadly consistent with 2019's pre-Covid figures.

Quiz also stated it was "pleased" with its gross margin generated across the year, with the gross margin recorded in the last quarter consistent with the same period in 2019 - driven by strong full-price sell-through of its trademark occasionwear and dressy casual wear products due to an increased number of weddings and holidays compared to the previous year.

Looking forward, Quiz said it was "encouraged" by the positive performance delivered during the year, which it said highlights "the strength and awareness of the Quiz brand".

As of 0815 BST, Quiz shares had surged 42.33% at 15.30p.