Fast-growing fashion retailer Quiz has issued its second profit warning in three months.
The Glasgow-based firm expects to make an annual profit of £8.2m, down from the previous estimate of £11.5m made in October.
The group has also slashed its revenue expectations twice.
Boss Tarak Ramzan said “the board considers it appropriate to revise its sales and profit expectations for the current year”.
It comes after the group said that over the Christmas trading period covering 25 November 2018 to 5 January 2019 revenues were up 8.4%.
The group’s online revenue increased by 34.1% during the period.
Founder and chief executive Mr Ramzan said: “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. “
But he said the growth and the margin achieved had “been below our initial expectations”.
Gross margins in the six months to 31 March 2019 are now expected to be around 60.5%, down from 62% in the six months to 30 September.
Mr Ramzan added: “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.”
Quiz was founded in 1993 and now runs about 70 stores and 148 concessions across the UK, as well as dozens of franchises in overseas locations including in the Republic of Ireland, Saudi Arabia, Malaysia, Singapore, United Arab Emirates, Cyprus, Egypt, Georgia and Pakistan.
The company says the brand targets primarily 16 to 35-year-old “fashion forward females”.
Last year it launched a new collection in collaboration with Gabby Allen, a finalist in TV reality show Love Island.
The group raised more than £100m when it floated on the London Stock Exchange’s junior Aim market in July 2018.
It set aside more than £10m of that to help fund further expansion.