Continued stable development during the quarter
The MQ Group has improved its operating profit and cash flow, in part due to a significantly higher gross margin as a result of fewer items in clearance sales. Drive and a high level of activity in line with our established plans are behind the improvement. The MQ retail chain is performing strongly while the Joy chain was adversely affected during the quarter by the dispute at the Port of Gothenburg in the summer. Efforts to develop two strong chain concepts while at the same time benefiting from synergies are being intensified.
Joy has been included in the consolidated statements since May 2016.
Fourth quarter (June 2017 – August 2017)
- Net sales amounted to SEK 467 million (487), down 4.1 per cent. Like-for-like sales declined 2.7 per cent (according to HUI Research like-for-like sales for the market as a whole declined by 2.4 per cent).
- The gross margin was 54.0 per cent (49.9) as a result of fewer items in clearance sales.
- Operating profit was SEK 33 million (31), which corresponds to an operating margin of 7.0 per cent (6.4).
- Profit after tax for the period is lower than for the same period the previous year, despite a higher operating profit. This can mainly be attributed to utilising Joy’s loss carry-forward, which was reported as deferred tax revenue last year. Profit after tax for the period amounted to SEK 24 million (27), which equates to SEK 0.69 (0.76) per share after dilution.
- Cash flow from operating activities was SEK 43 million (40).
Full year (September 2016 – August 2017)
- Net sales amounted to SEK 1,821 million (1,681), an increase of 8.3 per cent. Like-for-like sales declined 1.4 per cent (according to HUI Research like-for-like sales for the market as a whole declined by 2.0 per cent).
- The gross margin was 57.1 per cent (54.0).
- Operating profit amounted to SEK 124 million (121), which corresponds to an operating margin of 6.8 per cent (7.2).
- Profit after tax for the year amounted to SEK 94 million (95), which equates to SEK 2.67 (2.70) per share after dilution.
- Cash flow from operating activities was SEK 108 million (95).
- The Board proposes a dividend of SEK 1.75 (1.75) per share, which corresponds to 66 per cent of profit after tax for the year.
Events during the fourth quarter
- MQ celebrates 60 successful years in branded fashion together with its customers and employees.
- The MQ store in Varberg is refurbished with a new store concept.
- MQ launches Replay women in all of its stores.
- The Joy stores in Nacka and Lund are relaunched with a new store concept.
- External brands are launched in all Joy stores.
- The MQ Group adopts the One Bag Habit sustainability initiative which aims to actively reduce consumption of plastic.
Events after the end of the reporting period
- The MQ store in Kista Galleria is relocated and relaunched.
- Outlet by MQ opens in Jägersro.
- The Joy stores in Erikslund, Gävle, Västerås, Överby, Östersund and Umeå are relaunched with a new store concept.
- One Bag Habit has its first review which shows that the Group has saved 500,000 plastic bags, equivalent to 16 tonnes of plastic, during the initiative’s first three months.
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
This information is information that MQ Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 5 October 2017 at 07:15 a.m. CET.
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 combination 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 173 stores as well as online shopping. The MQ Holding share has been listed on the NASDAQ OMX in Stockholm since 18 June 2010. For more information, see www.mq.se