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Shares in AIM-listed clothes retailer QUIZ (LON:QUIZ) have plunged by 31.23% to 24.45p (as of 15:05 GMT) after the company said that sales during the Christmas period were below the levels expected. Additionally, the lower than anticipated revenues meant that discounting was higher than forecast in order to clear inventory, which will reduce margins for the six months to March 2019 by roughly 150 basis points relative to the previous year.
Chief executive Tarak Ramzan said that: “Against the backdrop of challenging trading conditions over recent months, QUIZ has delivered further revenue growth over the Christmas period driven by the performance of our own websites. However, the growth and the margin achieved have been below our initial expectations and, consequently, the Board considers it appropriate to revise its sales and profit expectations for the current year.
“We remain confident about QUIZ’s long-term potential as an omni-channel fashion brand with a clear customer focus. Management’s utmost priority remains achieving further growth for the business and improving profitability in the future“.