Fashion chain Quiz said sales have fallen over the past two months as shoppers faced the rising cost of living.
The group revealed a jump in revenues for the past year but said like-for-like revenues for February and March were lower due to “challenging trading conditions”.
Quiz also cautioned that “significant pressures on consumer spending seen in recent months” are set to continue in the new financial year and could weigh on demand over the coming months.
Nevertheless, the retailer said it “remains highly confident” over the strength of the brand and held firm on profit expectations.
The annual growth was driven by a 23% rise in revenues to £45.5 million across its UK stores and concessions as more shoppers returned to the high street.
Quiz boss Tarak Ramzan said: “The group delivered a good performance in full-year 2023, achieving revenue growth across each of its channels, reflecting the strength of Quiz’s trademark dressy and occasion wear product offering.
“This outcome, which was achieved despite the challenging market backdrop in recent months, is a strong testament to our flexible model and differentiated brand.
“Whilst the external trading environment is expected to remain challenging in the near term, we remain highly confident in the group’s long-term prospects.”
Shares in the company dropped by 20.4% to 12.3p in early trading on Monday.