Fashion retailer Quiz has warned over full-year sales and mounting losses after a weak Black Friday and slumping consumer confidence.
Shares in the firm tumbled 19% in early trading on Tuesday as it cautioned that annual sales were set to be 6% to 8% lower than expected.
It saw sales fall £14.1 million behind its internal forecasts across October and November after the Black Friday sales event failed to boost trading as hoped.
The group cautioned that it expects to post “materially” bigger losses than first feared for the full year.
Its chairman Peter Cowgill has now launched a strategic review of the business and plans to announce the findings in the first quarter of next year.
Mr Cowgill was previously executive chairman of JD Sports, but left the retail chain in 2022 after the firm ran into problems with the competition regulator during its planned merger with Footasylum.
Tarak Ramzan, founder and chief executive of Quiz, said: “This has been a challenging period for many retailers, and we have not been immune to the widely publicised macro headwinds impacting consumer demand.
“Given the prolonged period of challenging trading we believe it is prudent to examine a range of options to maximise shareholder value.”
The caution over the full year revenue outlook came as the group revealed it swung to a £1.5 million loss before tax in the six months to September 30, against profits of £1.8 million a year ago.
Sales plunged 14.4%, with its online operations taking the brunt, down nearly 22%, with an 11% drop across its UK stores and concessions.
The group said there was little boost from the Black Friday sales event in November, with online sales remaining 20% lower in the past two months and UK stores and concessions 5.5% down.
Total sales were 11.2% lower across October and November.
It said: “Sales in the Black Friday period in our UK stores were marginally below the previous year on a like-for-like basis.
“There was a sharper drop in online revenues through the Quiz website which represents a disappointing shortfall across this important trading period.”