| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.10 | -83 |
QUIZ plc is a UK-based fashion retailer specializing in occasion wear and dressy casual wear for young women aged 16 to 35. Operating under the QUIZ brand, the company designs and retails clothing, footwear, and accessories through a multi-channel approach, including standalone stores, concessions, franchises, and e-commerce platforms. As of March 2022, QUIZ had a presence in the UK, Ireland, and internationally through 62 standalone stores, 69 concessions, 82 franchise and wholesale points of sale across 19 countries, and online partnerships. Headquartered in Glasgow, QUIZ plc was founded in 1993 and has built a reputation for trendy, affordable fashion. The company operates in the highly competitive apparel retail sector, catering to the fast-fashion segment with a focus on social occasions and night-out attire. Its omnichannel strategy combines physical retail with digital platforms to reach its target demographic effectively.
QUIZ plc presents a high-risk, high-reward investment opportunity in the volatile fast-fashion retail sector. The company's negative net income (£6.275 million loss) and operating cash flow (-£771k) in the reported period raise concerns about its near-term profitability, exacerbated by its high beta of 1.608 indicating significant market volatility sensitivity. However, its £81.96 million revenue demonstrates continued market demand for its product offering. The lack of dividends and £12.19 million in total debt against just £284k in cash equivalents suggests financial strain. Investors should weigh QUIZ's strong brand recognition among young UK consumers against intense competition in fast fashion and the company's current financial challenges. The stock may appeal to growth-oriented investors betting on a turnaround in the post-pandemic occasion wear market.
QUIZ operates in the highly competitive value fashion segment, competing against both fast-fashion giants and specialty occasion wear retailers. Its competitive advantage lies in its focused positioning as a destination for affordable going-out wear, a niche that differentiates it from broader fast-fashion competitors. The company's vertically integrated design and sourcing allow for relatively quick response to fashion trends. However, QUIZ faces significant challenges from larger competitors with greater scale advantages in purchasing, marketing, and digital capabilities. The company's concession model in department stores provides valuable retail space but may limit margin potential. Internationally, QUIZ's franchise model reduces risk but also limits control and profit potential. Digital transformation remains a critical challenge as online pure-plays capture increasing market share. QUIZ's target demographic (16-35 year old women) is particularly sensitive to both fashion trends and economic conditions, creating both opportunity and volatility. The company's relatively small scale makes it vulnerable to supply chain disruptions and inflationary pressures that larger competitors can better absorb.