Under-pressure womenswear retailer Quiz issued a trading update on Friday covering the four months to the end of November and highlighted “a marked decline in traffic both online and in-store” in the final month of the period.

It must be frustrating for the business that’s battling to get back to full health as it also said that “for the first three months of the period from 1 August to 31 October, several of the group’s KPIs were trending positively”.

Given that Black Friday was a week later than in 2023, the company added that “it remains uncertain at this stage what the impact of Black Friday and the recent UK Budget announcement is having on this year’s pattern and level of spend”.

But there’s no getting away from the fact that its performance isn’t improving and revenues in the four-month period amounted to £24.9 million, a £1.5 million reduction on the prior year.

“Further to the notable decline in traffic and footfall in November, sales for the eight months [to] 30 November 2024 were behind management expectations” at £52.2 million, it said. That’s an 8.6% reduction year on year.

The company said online sales fell 8.1% to £7.9 million and UK store and concession sales dropped 9.7% to £12.1 million. But at least international sales rose 11.3% to £4.9 million.

Breaking that performance down further, it explained that online sales in the first three months of the period “were consistent with the previous year” and “during these months, sales through third-party websites were on an improving trend reflecting increased sales with existing partners as well as the benefit of commencing sales through the Debenhams website earlier in the year”. In addition, sales through its own website during these three months benefited from improving traffic trends. However, overall e-sales for the period were “significantly impacted” by the material year-on-year decline in demand during November.

The firm was “encouraged by the modest like-for-like uplift in sales across our store estate in the first three months of the period”. But again, November was dire. Footfall declines “led to a significant reduction in revenues, which were only modestly offset by encouraging levels of spend over the Black Friday weekend”.  During the period the group opened an outlet store in Sunderland which is concentrated on sale product allowing its flagship stores to increasingly focus on full-price product.

And regarding that positive international performance, it said revenues benefited from strength via its partners in the Middle East and the US.  The transfer of its largest International market to a new partner earlier in the year “resulted in increased revenues with the partner planning to open four new stores in the coming months to complement their existing 15 stores”.

At least the gross margin performance in the four months “was consistent year on year”.

Quiz also updated on its financial position and said the forthcoming rise in the National Living Wage and Employer’s National Insurance arrangements, will mean around £1.7 million annually of additional costs from April 2025. 

And it said the company has £4 million of bank facilities that are scheduled to expire on 30 June 2025. There are no financial covenants applicable to these facilities, which are repayable on demand. As of 5 December 2024, it had net borrowings of £2.8 million and total liquidity headroom of £1.2 million.

It’s “managing working capital carefully” but “given the disappointing level of revenues in November the cash headroom available to the business is less than previously anticipated”.  As a result, and subject to the trading performance during the important pre-and-post-Christmas period, its existing bank facilities could be fully utilised in the first quarter of 2025. 

While it has the offer of a £1 million loan facility from it founder, it’s reviewing its financing and strategic options and “has engaged advisors to consider appropriate options”.