Quiz has reported a pre-tax profit of £1.8m - up from a £1.3m loss during the same period last year - but warned that cost of living pressures are making the near-term outlook uncertain.
The Glasgow-headquartered fast fashion brand's unaudited interim results for the six months ended 30 September, also showed that group revenues increased 37% from £36m to £49.4m, reflecting stronger consumer demand and softer prior year comparatives as a result of Covid-19 related disruption.
Gross margin returned to levels seen in the first half of 2020, reflecting improved full-price sell-through.
Administrative and distribution costs rose by a quarter, although the group was able to leverage off its existing infrastructure.
Operating cash flows were £6.5m, up from £3.4m during the same period in 2021.
UK store and concession revenues increased 48% to £24.6m, with demand at pre-pandemic levels on a like-for-like basis.
Online revenues increased 29% to £16.1m, driven by sales through Quiz's own website.
Active customers on that website increased 14% since March 2022, driven by continued investment in digital marketing during the period.
International revenues increased 26% to £8.7m, from £6.9m last year.
Quiz opened two stores, taking the total estate to 62 stores in the UK and six in the Republic of Ireland at the end of the period. One further store opening completed in the UK since the end of September.
Sales for the two months to 30 November, including the Black Friday sales period, totalled £16m, down marginally from £16.2m the prior year - and were broadly in-line with management expectations, with demand in recent weeks helping to offset weaker than anticipated revenues in October.
However, the board "recognises that the group is not immune to the widely reported cost of living and inflationary pressures impacting across the sector", so as a result, the near-term outlook is difficult to predict.
Total liquidity headroom at 6 December stands at £11.3m, being cash net of borrowings of £7.8m and £3.5m of undrawn banking facilities.
Founder and chief executive Tarak Ramzan commented: "The Quiz brand has performed well in the first half of the year, with strong year on year sales growth of 37% supporting increased profitability and a strong cash position.
"Whilst we will not be immune to the widely publicised cost of living pressures on the consumer in the second half of the year, I remain confident that supported by our omni-channel model, fantastic brand and unique occasion wear offering, Quiz is positioned well for long-term, sustainable and profitable growth."
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