MARKET REPORT: Quiz’s future looks ‘shaky’ amid festive sales slump

Quiz was under pressure from investors yesterday after it became the latest to reveal heavy trading activity – and warned it may need further funding.

Shares in the AIM-listed fashion retailer Quiz fell 43.2 per cent, or 2.3 cents, to 3.04 cents after it said both online and in-store traffic saw a ‘marked decline’ during the key trading month of November before Christmas.

As a result, sales for the four months to the end of November fell by £1.5 million compared to the same period last year, to £24.9 million.

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

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

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

The update follows a cut in guidance from Frasers Group, owner of chains such as Sports Direct and House of Fraser, as well as major stakes in companies such as Boohoo (up 0.7 per cent, or 0.26p, to 35.26p) and Mulberry (-2.5 percent, or 2.5p, to 97.5p).

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

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

The offer values ​​the Scandinavian company, in which Frasers already owns a 26 percent stake, at £17.4 million.

Ending a generally positive week for London markets, the FTSE 100 index fell 0.5 percent, or 40.77 points, to 8,308.61, while the FTSE 250 index fell 0.3 percent, or 57 .94 points, added to 21059.

Builders were among the market’s bright spots as house prices hit record highs, with Barratt Redrow rising 1.1 percent, or 4.9 cents, to 434.4 cents and Persimmon adding 0.9 percent, or 11 cents, to 1287, 5 cents.

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

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

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

In a weak defense sector, BAE Systems fell 1.4 percent, or 17.5 cents, to 1,229.5 cents, unfazed by news that it has individual contracts worth a total of £2 billion with both Sweden and Denmark signed for new CV90 combat vehicles.

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

The commentary from brokers weighed on support services company Serco, which fell 5.1 percent, or 7.9p, to 147.5p after analysts at Swiss bank UBS cut their stance to “buy” from ‘sell’.