A weak quarter with important steps forward

The MQ Group looks back on a quarter with weak sales, driven by lower sales in the summery categories of the range. There has been a continued high level of campaign activity, both for us and the market, and this has continued to put pressure on margins. MQ’s new online shopping platform was launched at the end of the quarter and generated good results from the outset. The structural action programme is running at full force with store closures, cost savings and the integration of employees from Joy’s headquarters into MQ premises. The preference share issue continued during the quarter and it is pleasing to note a high level of participation among existing shareholders. 

Third quarter (March – May 2019)  

• Net sales amounted to SEK 380 million (413), down 8.2 per cent. Like-for-like sales declined 7.7 per cent (according to HUI Research like-for-like sales for the market as a whole declined by 4.8 per cent). 
• The gross margin was 59.8 per cent (62.8). 
• Operating profit/loss was SEK -4 million (28), which corresponds to an operating margin of -1.1 per cent (6.7).  
• Profit/loss after tax for the period amounted to SEK -5 million (21), which equates to basic and diluted earnings per share of SEK -0.09 (0.42).  
• Cash flow from operating activities was SEK -6 million (27). 

Nine-month period (September 2018 – May 2019) 

• Net sales amounted to SEK 1,205 million (1,290), down 6.6 per cent. Like-for-like sales declined 6.5 per cent (according to HUI Research like-for-like sales for the market as a whole declined by 3.4 per cent).
• The gross margin was 56.6 per cent (58.3).
• Operating profit/loss amounted to SEK -520 million (59), including a non-recurring item for writing down intangible assets of SEK -500 million and a non-recurring cost of SEK -17 (-7), which equates to an operating margin of -43.2 per cent (4.6).
• Operating profit/loss excluding write-down of intangible assets amounted to SEK -20 million (59), which equates to an operating margin of -1.7 per cent (4.6).
• Profit/loss for the period amounted to SEK -519 million (44), including a non-recurring item for writing down intangible assets of SEK -500 million, which equates to basic and diluted earnings per share of SEK -10.27 (0.91).
• Profit/loss for the period excluding write-down of intangible assets amounted to SEK -19 million (44), which equates to basic and diluted earnings per share of SEK -0.37 (0.91).
• Cash flow from operating activities was SEK -29 million (47).

For further information, please contact: 
Ingvar Larsson, President and CEO: +46 (0)31-388 80 70
Ola Wahlström, CFO: +46 (0)31-388 80 80 

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 people set out above, on 19 June 2019 at 07:15 CET.  

MQ Holding AB owns and operates fashion stores under two business areas: 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 171 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 

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