Fashion chain Quiz has revealed it swung to a loss for the past year after sales slumped in the face of cost-of-living pressures on customers.
Sheraz Ramzan, chief executive of the business, said its performance had been “disappointing” but stressed it was committed to its turnaround strategy.
Quiz reported a pre-tax loss of £6.7 million for the year to March 31 in the delayed update, as it slid from a £2.3 million profit a year earlier.
It came as revenues dropped by 10.6% to £82 million for the year.
The sales downturn was largely due to “the impact of cost-of-living pressures on consumer demand”, the retailer said.
The group saw particularly weak sales online, which slid by 18% to £24.5 million for the year.
Meanwhile, sales from stores and concessions were 8% lower at £41.7 million.
It reported that its number of active customers declined by 19% to 521,000 for the year.
Quiz added that sales continued to decline into the new financial year, with total sales down 11.1% to £27.3 million for the four months to July 31.
The retailer said it “continues to be impacted by inflationary pressures impacting consumer confidence”.
However, it is hopeful it will see a positive effect from a turnaround strategy launched earlier this year.
The strategy under its new chief executive includes efforts to refocus itself further towards “occasion wear and dressy categories”, improvements to its store portfolio and a restructuring of its buying and merchandising operations.
Mr 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.
“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.”