A challenging quarter for the MQ Group
Sales during the fourth quarter did not develop in line with expectations. The unusually hot summer had an adverse impact on sales, leading to more items being sold at sale prices and a delayed start to the autumn season. The whole year has been a challenge in terms of decreased customer traffic and sales, primarily in the MQ chain, leading to lower profitability for the Group. The Joy chain continues to see increased footfall, and sales are on a par with last year. The Group’s new CEO Ingvar Larsson started on 20 August. We now put a weak quarter behind us and turn our sights to the future.
Fourth quarter (June 2018 – August 2018)
- Net sales amounted to SEK 445 million (467), down 4.8 per cent. Like-for-like sales declined 6.2 per cent (according to HUI Research like-for-like sales for the market as a whole declined by 3.9 per cent).
- The gross margin was 47.5 per cent (54.0).
- Operating profit/loss was SEK -8 million (33), which corresponds to an operating margin of -1.7 per cent (7.0).
- Profit/loss after tax for the period amounted to SEK -3 million (24), which equates to SEK -0.09 (0.69) per share after dilution.
- Cash flow from operating activities was SEK 31 million (43).
Full year (September 2017 – August 2018)
- Net sales amounted to SEK 1,735 million (1,821), down 4.7 per cent. Like-for-like sales declined 6.0 per cent (according to HUI Research like-for-like sales for the market as a whole declined by 2.6 per cent).
- The gross margin was 55.6 per cent (57.1).
- Operating profit was SEK 51 million (124), which corresponds to an operating margin of 2.9 per cent (6.8).
- Profit after tax for the period amounted to SEK 41 million (94), which equates to SEK 1.17 (2.67) per share after dilution.
- Cash flow from operating activities was SEK 78 million (108).
- The Board proposes that no dividend be paid for the 2017/2018 financial year in order to create scope to strengthen primarily the company’s digital development (previous year: SEK 1.75 per share).
Events during the fourth quarter
- Ingvar Larsson took up his post as the new President and CEO of the MQ Group in August.
- MQ’s store in Umeå moved from MVG to Utopia, with a new launch and a new store concept.
- The Tiger Jeans brand (women) was launched during the fourth quarter.
- The Blue Billie (women) and Enter brands were launched on MQ Shop Online.
Events after the end of the reporting period
- MQ has remodelled its store in Stenungsund in line with a new store concept.
- As planned, MQ has closed its store on Tullgatan, Malmö.
- MQ and Joy have opened new stores in Kristianstad at C4 Shopping. Joy accordingly closed its store in Kristianstad City.
- MQ and Joy have opened new stores in Mölndal Galleria. Joy accordingly closed its store in Mölndal.
- Joy has been nominated in two categories – Omnichannel of the Year and Store Retailer of the Year – in the Habit Fashion Show 2018.
For further information, please contact:
Ingvar Larsson, President and CEO: +46 (0)31 388 80 70
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 4 October 2018 at 07:15 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 174 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