Fast fashion retailer Quiz pre-tax profits have dropped by 85% to £600,000 for the six months to 30 September, compared to £4.2m in the same period last year.
Quiz says online sales rose 12% and international revenue climbed 3% but profits were hit by “onerous” shop leases amid a difficult retail environment.
As a result, UK sales tumbled by 11% to £31.3m.
The exceptional charge is partially attributable to the structural shift of people increasingly shopping online, says Quiz founder and chief executive Tarak Ramzan.
He says: “We have a clear customer focus, a healthy brand and a flexible model that the board believes will enable Quiz to adapt to the changing retail environment and return to profitable growth in the medium term.”