QUIZ (LON:QUIZ) clothing looks interesting to me. I was first attracted to it as a share because it has strong Boohoo.Com (LON:BOO) style advertising everywhere on the London Underground and I noticed more women in my office were browsing the site at work. This is a retailer towards the budget end of the highstreet with around 70 physical stores, primarily in the UK, around 170 concessions in the UK and Ireland, and a fast growing online presence. It focuses on women’s occasionwear, although other everyday product lines are also available, so its market cap (c. £160m) will probably not reach the same dizzy heights as e.g. Boohoo.Com (LON:BOO). Like Boohoo.Com (LON:BOO) it focuses on a “just in time” model of fashion and is also headquartered in the UK. However, compared to other fast growing shares, its p/e ratio is more modest at around 17 based on 2019 estimates which look like an underestimate to me. This follows a fairly consistent fall in share price since it IPO’ed in 2017. 

I’ve written a short summary below and would welcome others’ views. I hold a small amount of shares since buying at 129p.  

BULL POINTS:

  • The company is experiencing good revenue growth. In the six months to September 2017 growth was 35% and at Christmas it was 32% compared to the same periods in 2016.
  • Online revenue growth is even stronger but note that this has been from a low base as the company seems to have been a bit slow to adapt to online. 6m to September 2017 was 205% growth and 119% at Christmas 2017. That’s a fall but they have been pushing their online channel over the last year or two so I have assumed (without probing too much) that the Christmas fall in growth is due to a higher comparative in Christmas 2016. Its growth strategy focuses on online opportunities and developing international websites. I think its website is very easy to use and browse.
  • H1 2017/18 EPS grew 35% yet brokers’ estimated 2018 EPS of 6.35p assumes EPS growth of 19%. So I think there is a good chance of this being beaten unless costs are significantly higher (not impossible given high street pressures).
  • No debt.
  • It has a…

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