Fashion chain Quiz has announced that it made a loss last year after sales collapsed due to cost of living pressures on customers.

Sheraz Ramzan, the company’s CEO, described the company’s performance as “disappointing” but stressed that the company is committed to its turnaround strategy.

Quiz reported a pre-tax loss of £6.7 million in its delayed update for the year to March 31, after making a profit of £2.3 million the previous year.

This came as revenue fell 10.6% to £82 million for the year.

The decline in sales was largely due to “the impact of cost of living pressures on consumer demand,” the retailer said.

The group recorded particularly weak sales in the online sector, where sales fell by 18% to £24.5 million over the course of the year.

At the same time, sales from shops and concessions fell by 8% to £41.7 million.

The company reported a 19% decline in the number of its active customers during the year, to 521,000.

Quiz added that sales continued to decline in the new financial year, with total sales falling 11.1% to £27.3 million in the four months to July 31.

The retailer said it “continues to be affected by inflationary pressures, which are impacting consumer confidence.”

However, we are confident that the turnaround strategy initiated at the beginning of the year will have a positive impact.

The new CEO’s strategy includes a refocus on the “occasion and formal wear” categories, improvements to the store portfolio and a restructuring of purchasing and merchandising activities.

Mr Ramzan said: “While these results are disappointing – in part due to the challenging macroeconomic conditions affecting many retailers – we have a clear plan to improve performance by leveraging our key strengths as an omnichannel retailer with a distinctive brand.

“In the new financial year, we have already implemented several operational initiatives that I am convinced will support our longer-term turnaround strategy.

“While trading conditions remain challenging this year and our turnaround will take some time, I am pleased with the speed with which we as a team have been able to drive positive change in the business.”