- Huw Hughes |
Quiz has become the latest fashion brand to issue a profit warning amid the ongoing Covid-19 pandemic.
The fast-fashion brand announced in a trading update that due to “ongoing uncertainty regarding the duration of the Covid-19 outbreak” it would not be providing full-year guidance, and that it expects revenues and margins in March 2020 to be “materially below” its board's expectations.
The company said its full-year results will also be impacted by factors such as “determining the recoverability of debtor balances, the adequacy of inventory provisions and the requirement for further non-cash store fixture and lease provisions.”
The partywear specialist said it is looking at ways to cut costs by postponing capital projects, “substantially” reducing stock intakes and deferring payments wherever possible.
Earlier in March the company took the decision to close all its physical stores and concessions after noticing a “substantial” drop in traffic both online and in-store.
The brand said that prior to the Covid-19 outbreak its performance had been in-line with expectations.
As at 24 March 2020, the group had net cash of 8.3 million pounds, a 2 million pound overdraft facility and a 2 million pound working capital facility available. The facilities are scheduled to expire on 23 April and the group is seeking their renewal.
Photo credit: Quiz via Hudson Sandler