MARKET REPORT: Quiz’s future appears ‘shaky’ amid festive gross sales stoop

Quiz was in the hot seat with investors yesterday after it became the latest to reveal tough trading – warning that it may need further funding.

Shares in the AIM-listed fashion retailer plunged 43.2 per cent, or 2.3p, to 3.04p after it said both online and in-store traffic suffered a ‘marked decline’ during the important pre-Christmas trading month of November.

As a result, revenue for the four months to the end of November was down by £1.5m compared to the same period last year at £24.9m. 

And sales in the eight months to November fell by 8.6 per cent to £52.2m, which Quiz said was ‘behind management expectations’.

In the absence of a material improvement to trading during the key pre-and-post-Christmas period, additional funding would likely be needed in early 2025, the Glasgow-based Quiz told shareholders. 

Dan Coatsworth, investment analyst at broker AJ Bell, said: ‘Even if the company is able to limp through in the short term, the longer-term prospects for the business look shaky at best.’

Struggle: Shares in the AIM-listed fashion retailer plunged 43.2 per cent, or 2.3p, to 3.04p after it said both online and in-store traffic suffered a ‘marked decline’

The update comes hot on the heels of a guidance cut from Frasers Group, owner of chains such as Sports Direct and House of Fraser as well as big stakes in the likes of Boohoo (up 0.7 per cent, or 0.26p, to 35.26p) and Mulberry (down 2.5 per cent, or 2.5p, to 97.5p).

Frasers itself remained under pressure yesterday, with shares down 3.6 per cent, or 24p, to 638p. 

The acquisitive retailer, controlled by former Newcastle United tycoon Mike Ashley, unveiled plans to make a voluntary offer for Norwegian sports retailer XXL ASA.

The bid values the Scandinavian firm, in which Frasers already owns a 26 per cent chunk, at £17.4m.

At the end of an overall positive week for the London markets, the FTSE 100 index fell 0.5 per cent, or 40.77 points, to 8308.61, while the FTSE 250 index added 0.3 per cent, or 57.94 points, to 21059.

Builders were among the market’s bright spots as house prices hit a record high, with Barratt Redrow ahead 1.1 per cent, or 4.9p, to 434.4p and Persimmon adding 0.9 per cent, or 11p, to 1287.5p.

Utilities were weaker, however, ahead of this month’s final regulatory proposals from water regulator Ofwat. 

Analysts at Jefferies downgraded their ratings for United Utilities and Severn Trent to ‘hold’ from ‘buy’ as they feel that, ahead of the proposals, the risk-reward for both looks more balanced at current valuations. 

FTSE 100-listed United Utilities shed 3.4 per cent, or 38.5p, to 1090.5p and Severn Trent lost 3.1 per cent, or 86p, to 2656p.

In a weak defence sector, BAE Systems slipped 1.4 per cent, or 17.5p, to 1229.5p unmoved by news it has signed individual contracts worth a total £2bn with both Sweden and Denmark for new CV90 combat vehicles.

Blue-chip engineer Spirax shed 2.9 per cent, or 220p, to 7275p, hit by a downgrade to ‘neutral’ by analysts at JP Morgan Cazenove.

Broker comment weighed on support services business Serco, which slipped 5.1 per cent, or 7.9p, to 147.5p as analysts at Swiss bank UBS chopped their stance to ‘sell’ from ‘buy’.