The Motley Fool

Could QUIZ plc Ord 0.3p be a millionaire-maker stock?

Quiz (LSE: QUIZ) is the latest fashion retailer to join AIM. Like recent fellow fashion floats and Joules, it made quite a splash on its debut. Its shares soared as high as 23% above the IPO price during the first day of trading on Friday.

Could it be a millionaire-maker stock? After all, AIM’s biggest company, Asos, has delivered a  28,000% return since floating in 2000. You’d be a millionaire today if you’d invested just £36.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Quiz’s biz

Quiz describes itself as “an established and distinctive omnichannel and international own brand in the women’s value fast fashion sector [with] a focus on occasion wear and dressy casualwear primarily for 16-to-35 year-olds.”

The group has 73 standalone stores and 165 concessions in the UK and Ireland and 65 international franchise stores, concessions and wholesale partners in 19 countries. It also operates online through its website and apps.

Share price movements

Before considering such things as revenue and valuation, let’s have a quick look at Quiz purely in terms of the post-IPO share price movements of its predecessors Joules and Boohoo:

  Admission date IPO price (p) First day closing price (p) Subsequent low price (p) Current price (p)
Quiz July 2017 161 190 190 190
Joules May 2016 160 194 163 301
Boohoo March 2014 50 70 22 234

Joules and Boohoo saw big rises on the first day of trading. However, in both cases you could have subsequently picked up their shares cheaper. And, in the case of Boohoo, cheaper than the IPO price. On this basis, it may be over-early to pay as much as 190p for Quiz’s shares.


The fact that pureplay online retailers like Boohoo are commanding much higher valuations than multi-channel operators like Joules and Quiz appears not to have been lost on the latter’s management and advisors.

Quiz’s AIM admission document contained three times as many mentions of the words “e-commerce”, “online”, “digital” and “mobile” as Joules’ did (a total of 126 versus 42). The table below, showing online revenue as a percentage of total revenue, provides something of a reality check.

  2013 2014 2015 2016 2017
Quiz (%) 6.1 9.2 9.6 11.4 13.3
Joules (%) 20.5 25.0 22.2 22.9 24.8
Boohoo (%) 100 100 100 100 100

While Quiz believes it can grow online revenue to 35% in the medium term, such a target also appears well within the grasp of Joules. I’ll also note that despite Quiz’s proportion of online revenue expanding more rapidly than Joules’ over the last five years (as shown in the table above), the latter’s total revenue has increased at a faster compound annual growth rate (CAGR) than Quiz’s, as shown in the table below.

  2013 2014 2015 2016 2017 CAGR 2013-17
Quiz (£m) 47.9 53.0 61.3 69.3 89.8 17.0%
Joules (£m) 77.5 95.6 116.4 131.3 157.0 19.3%
Boohoo (£m) 67.3 109.8 139.9 195.4 294.6 44.6%


Boohoo’s growth is streets ahead of its multi-channel rivals and we should not be surprised if it rates at a significantly higher valuation. I would suggest Quiz merits a rating somewhere on a par with Joules. The table below shows some price-to-sales (P/S) ratios for the three companies — the P/S being, in my view, an appropriate valuation measure at this stage for these fast-growing, land-grabbing businesses.

  P/S at IPO price P/S at first day price P/S at current price
Quiz 2.2 2.6 2.6
Joules 1.1 1.3 1.7
Boohoo 5.1 7.2 9.1

Quiz looks a decent business with good prospects. However, I can’t see it merits a sizeable premium to Joules on current evidence. I suspect that, as we’ve seen in the past, investors are showing a bit of initial over-excitement about a market newcomer and that you’ll be able to pick up Quiz’s shares below 190p in the coming months.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…

And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

G A Chester has no position in any shares mentioned. The Motley Fool UK owns shares of and has recommended ASOS. The Motley Fool UK has recommended Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.