Focus on growth in Sweden

In order to concentrate on growth in Sweden, the decision was made to close the
Norwegian operations. Concurrently, retail-clothing company Joy is now being
integrated in the Group and digital activities are being intensified. The
financially sluggish period is attributed to lower like-for-like sales, costs
for the acquisition of Joy, remodelling of stores and more marketing
communications. MQ is now taking vital steps to further develop the company.

Joy is included in the consolidated statements starting May 2016.

Third quarter (March 2016–May 2016)

  · Net sales amounted to SEK 379 million (363), up 4.4 percent. Like-for-like
sales declined 3.4 percent (according to the Swedish Retail Institute Index, the
market’s comparable stores grew 1.7 percent).
  · Gross margin was 60.9 percent (60.1).
  · Operating profit was SEK 32 million (47), corresponding to an operating
margin of 8.5 percent (12.8).
  · Profit after tax was SEK 24 million (36), corresponding to SEK 0.68 (1.01)
per share after dilution.
  · Cash flow from operating activities was SEK 8 million (46).

Nine-month period (September 2015–May 2016)

  · Net sales amounted to SEK 1,194 million (1,137), an increase of 5.0 percent.
Like-for-like sales increased 3.0 percent (according to the Swedish Retail
Institute Index, the market’s comparable stores grew 3.2 percent).
  · Gross margin was 55.7 percent (56.7).
  · Operating profit totalled SEK 90 million (111), corresponding to an
operating margin of 7.5 percent (9.8).
  · Profit after tax was SEK 68 million (84), corresponding to SEK 1.94 (2.39)
per share after dilution.
  · Cash flow from operating activities was 55 million (115).

Events during the third quarter

  · Acquisition of retail-clothing company Joy was completed on 2 May and Joy
Shop AB has now joined the MQ Group.
  · MQ Group’s CEO Christina Ståhl assumes the additional role as President of
Joy in conjunction with completion of the acquisition process.
  · During the quarter, two new MQ stores opened in Vetlanda and Bollnäs.
  · Femman in Gothenburg and MQ Outlet in Ullared have been remodelled, while
Strömpilen in Umeå has been reestablished and recently opened in Gallerian
Avion.
  · New labels such as American Vintage, Butterfly Twist, Maidenform and
Selected Femme were launched on MQ Shop Online during the third quarter.

Events after the end of the reporting period

  · The decision has been made to close MQ’s Norwegian operations (four stores).
  · To further reinforce our digital activities, the head of Omnichannel will
also be in charge of the company’s marketing communications. The department will
subsequently assume total responsibility for promoting integrated communication
and optimised media presence, featuring mq.se as the hub of all communication.

For further information, please contact:
Christina Ståhl, President and CEO: Tel: +46 31 388 80 10
Tony Siberg, Deputy CEO and CFO: Tel: +46 31 388 84 01
MQ Holding AB owns and operates fashion stores under two business areas: MQ and
JOY. MQ is Sweden’s largest retailer of fashion brands today. Through a select
mix of proprietary and external brands, MQ offers high-fashion menswear and
womenswear in attractive stores. JOY targets fashion-conscious women at midlife
who desire excellent quality, fit and comfort. The two business areas currently
comprise a total of 178 stores as well as online shopping. The MQ Holding share
has been listed on Nasdaq Stockholm since 18 June 2010. For more information,
please visit our website at www.mq.se