MQ doubles its operating profit
MQ experienced a strong third quarter, during which the company doubled its
operating profit. Sales were impacted by the fact that the summer sale period in
the preceding year began in May, which caused like-for-like sales, adjusted for
discount effects, to increase 5.6 percent. The gross margin improved and
significant cost savings were achieved. The company reported a strong cash flow
and record-low level of net debt.
Third quarter (March 2014-May 2014)
· Net sales amounted to SEK 350 million (354), down 1.1 percent. Sales in
comparable stores declined 0.7 percent. Adjusted for discount effects in the
preceding year, like-for-like sales rose 5.6 percent (according to the Swedish
Retail Institute Index, the market increased 0.6 percent).
· The gross margin was 61.3 percent (60.2).
· Operating profit totalled SEK 42 million (21), corresponding to an operating
margin of 12.0 percent (5.9).
· Profit after tax amounted to SEK 31 million (12), corresponding to SEK 0.90
(0.35) per share after dilution.
· Cash flow from operating activities was SEK 63 million (43).
Nine-month period (September 2013-May 2014)
· Net sales amounted to SEK 1,139 million (1,114), up 2.2 percent. Sales in
comparable stores increased 0.9 percent. Adjusted for discount effects in the
preceding year, like-for-like sales rose 2.7 percent (according to the Swedish
Retail Institute Index, the market contracted by 0.7 percent).
· The gross margin was 56.6 percent (56.5).
· Operating profit totalled SEK 97 million (46), corresponding to an operating
margin of 8.6 percent (4.1).
· Profit after tax amounted to SEK 70 million (26), corresponding to SEK 2.02
(0.75) per share after dilution.
· Cash flow from operating activities was SEK 118 million (72).
Events during the third quarter
· MQ’s brand portfolio was strengthened in March with the addition of three
new brands: Sail Racing, Ilse Jacobsen and A-One.
· One store in Malmö was closed: Malmö Entré.
Events after the end of the reporting period
· No significant events occurred after the end of the reporting period.
For further information, please contact:
Christina Ståhl, President and CEO: Tel: +46 (0)31 388 80 10
Tony Siberg, Deputy CEO and CFO: Tel: +46 (0)31 388 84 01
MQ is one of Sweden’s leading retailers of fashion brands. Through a select mix
of proprietary and external brands, MQ offers men’s and women’s clothes with a
high fashion content in attractive stores. The store chain currently comprises
121 stores and the aim is to establish. MQ as the leading retailer of fashion
brands in the Nordic region. The MQ share has been listed on NASDAQ OMX
Stockholm since 18 June 2010. For more information, please visit our website at
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