High street retailer Quiz has announced a turnaround strategy after swinging to a loss in its final year earnings, blaming cost-of-living pressures and cool consumer demand.
The Glasgow-headquartered company booked a loss before tax of £6.7m, including a £1.5m non-recurring impairment charge, falling from a profit of £2.3m in 2023.
Earnings before interest, tax, depreciation and amortisation (EBITDA) plummeted 85.5 per cent to £900,000, down from the £6.2m it reported in 2023.
Quiz said this was mainly due to an 11 per cent drop in revenue, which fell to £82m from £91.7m in 2023.
The clothing brand had briefly returned to profit in December 2022 but now finds itself struggling again.
To revive its fortunes, the company has implemented a turnaround strategy under the leadership of new chief executive, Sheraz Ramzan.
‘We have a clear plan’ – Quiz CEO
Ramzan said: “Whilst these results are disappointing – in part driven by the challenging macroeconomic conditions impacting many retailers – we have a clear plan to improve performance by leveraging our key strengths as an omni-channel retailer with a distinctive brand.
“We have identified several focus areas to build a more resilient business, improve our performance, and return to profitable growth in the medium term.”
Key initiatives include refining its target customer base and brand identity, adopting a fresh marketing approach and expanding its distribution channels.
The company has also secured additional bank facilities and is negotiating further funding to bolster liquidity.
Ramzan added: “In the new financial year to date we have already implemented several operational initiatives which I am confident will support our longer-term turnaround strategy.
“Whilst trading conditions in the current year have remained challenging and our turnaround will take time, I am pleased with the speed at which as a team we have been able to drive positive changes in the business,” he added.