MQ continues to strengthen earnings and cash flow
MQ’s financial trend remains positive. Lower costs together with an increased gross margin generated stronger earnings for the period. Development efforts have entered a new phase where the focus is on strengthening MQ in a commercial context in all channels. A manager with a broad retail background has been recruited for Norway, thereby giving the business in Norway a new start.
Second quarter (December 2014-February 2015)
- Net sales amounted to SEK 417 million (417). Sales in comparable stores/online increased 0.3 percent (according to the Swedish Retail Institute Index, the market’s like-for-like sales grew 1.2 percent.) During the period, a new omnichannel department has been created at MQ as boundaries between in-store sales and online sales have been erased. MQ has therefore chosen to report like-for-like sales and online sales together.
- The gross margin was 50.0 percent (49.6).
- Operating profit amounted to SEK 26 million (20), corresponding to an operating margin of 6.2 percent (4.9).
- Profit after tax was SEK 19 million (14), corresponding to SEK 0.55 (0.40) per share after dilution.
- Cash flow from operating activities was SEK 60 million (49).
First six months (September 2014-February 2015)
- Net sales amounted to SEK 774 million (789), down 1.9 percent. Sales in comparable stores/online declined 1.5 percent (according to the Swedish Retail Institute Index, the market’s like-for-like sales were down 0.8 percent).
- The gross margin was 55.1 percent (54.5).
- Operating profit amounted to SEK 65 million (55), corresponding to an operating margin of 8.3 percent (7.0).
- Profit after tax was SEK 49 million (39), corresponding to SEK 1.38 (1.12) per share after dilution.
- Cash flow from operating activities was SEK 70 million (55).
Events during the second quarter
- During the period, a new omnichannel department was created to more clearly integrate MQ’s sales channels: online sales, loyalty club and in-store.
- The external brand, Didriksons, was launched on MQ Shop Online.
Events after the end of the reporting period
- A manager with a broad retail background has been recruited for Norway.
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 120 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 Stockholm since 18 June 2010. For more information, please visit our website at www.mq.se .