Quiz has reported a 97% year-on-year rise in revenue, helped by stores reopening and social occasions returning due to the removal of Covid-19 restrictions.
The Glasgow-headquartered fast fashion brand's results for the year ended 31 March 2022 showed that higher levels of full price sales resulted in an increase to the gross margin at 60.3%, consistent with the gross margin generated in the year prior to the pandemic, and up from from 53.4% during 2021.
Rising distribution and administrative costs were restricted to 22%, as increased revenues leveraged off the group's existing infrastructure.
Underlying earnings before tax of £5.1m reversed a £4.9m the previous year.
Underlying and reported profits before tax came in at just £800,000 - but were an improvement on the previous year's underlying loss of £9.6m.
Operating cash inflows of £5.3m also turned around the previous year's outflows of £2.5m.
Quiz counted total liquidity of £6.5m at the end of March, made up of cash net of borrowings of £4.4m and £2.1m in un-utilised bank facilities.
The brand reported a 66% increase in sales through its own website, with demand returning for its core occasion wear offerings.
Store restructuring undertaken during the previous year was reflected in positive contribution from stores.
Quiz's estate comprised 62 stores in the UK and five in the Republic of Ireland at the end of the year, with one further opening in the Republic of Ireland subsequently.
Revenues in the three months to 30 June increased 62% on the prior year and were consistent with the levels generated prior to the Covid-19 disruption on a like-for-like basis.
However, the stock exchange update noted that the potential for sales later in the year could be impacted by the effect of the inflationary environment and increases in the cost of living on consumer confidence.
The board stated that it remains confident the group can continue to deliver against its strategy and drive long-term sustainable growth, despite the "current challenging trading backdrop".
Tarak Ramzan, founder and chief executive of Quiz, commented: "The group delivered a very encouraging performance, with very strong revenue growth and a return to profitability.
"This outcome reflects increased demand for Quiz's product offering and was supported by the decisive actions we have taken in recent years to transform the business and successfully leverage the group's omni-channel model and infrastructure.
"Despite the well-documented challenges across the retail sector, we remain encouraged by customer demand for the brand, with sales up by 62% in the year to date.
"Whilst there are significant levels of uncertainty impacting the consumer right now, we are confident that Quiz is well positioned to continue to deliver against its strategy and drive long-term, sustainable and profitable growth."
Commenting on the results, Panmure Gordon analyst Matthew Webb noted that they were slightly ahead of April’s guidance, driven by a better-than-expected gross margin.
"In our view this performance, and specifically the return of the shops to profitability under their new rental terms, vindicates the strategic decisions to continue with the omni-channel model and focus on its own website and stores.
"Quiz has taken modest price increases to protect its gross margin and we leave our forecasts unchanged; the balance sheet position has been stabilised and its bank facilities renewed.
"Although Quiz unsurprisingly notes the challenging environment, we see this as a reassuring statement."
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