FASHION retailer Quiz has issued a warning over 'tough' trading conditions and projected a 'gloomy' outlook for the months ahead.
The Glasgow-based firm reported a rise in annual profit but a slide in demand for its fashions more recently, The Times reported.
It reported a pre-tax profit of £2.3 million in the year to the end of March, up from £800,000. Its revenue rose by 17 per cent to £91.7 million. But, sales fell by 15 per cent to £23.2 million in the three months to the end of June.
According to the company, inflationary pressure on consumer demand and tough comparatives from the previous year were the major reasons behind the drop in sales.
The company stated that it had experienced a "significant rebound" during the period ending in March. However, it subsequently faced a decline in sales over the past few months.
Shares of the company fell by 11.7 per cent on Wednesday (5).
“The trading environment in the opening months of the new financial year has been tough, reflecting the widely publicised external economic factors impacting consumer demand," Tarak Ramzan, 70, founder and chief executive of the Quiz Group, was quoted as saying by The Times.
He added that it looked set to continue in the second half of the financial year.
The Times reported that the retailer expects profit before tax for the year to be similar to that in the past 12 months.
Ramzan opened his first retail store in Glasgow in 1993 and began trading with three stores in Scotland. Quiz has now grown to over 150 stores and concessions in most of the major shopping centres and high streets across the UK.
With over 60 franchises in Europe and Asia the Quiz brand has also grown worldwide. The company employs more than 1000 members of staff in the UK alone.
The online store was launched in 2005 and has grown to become an important part of its multi-channel operation.
