Enhanced action programme following a weak quarter

The first quarter continued to be characterised by high campaign intensity and low demand, which has had an adverse impact on results. The first two months of the quarter developed below expectation, while November did show positive development. Further measures are being taken in addition to those already begun, the aim being to increase sales and reduce costs. The process of closing stores that do not boost profitability will now be intensified. A structural action programme has also been planned for early 2019. 

First quarter (September 2018 – November 2018)  

•  Net sales amounted to SEK 402 million (429), down 6.2 per cent. Like-for-like sales declined 7.0 per cent (according to HUI Research like-for-like sales for the market as a whole declined by 3.7 per cent). 
•  The gross margin was 61.0 per cent (62.1). 
•  Operating profit was SEK 12 million (36), which corresponds to an operating margin of 3.0 per cent (8.3). 
•  Profit after tax for the period amounted to SEK 9 million (27), which equates to SEK 0.25 (0.77) per share after dilution.
•  Cash flow from operating activities was SEK -16 million (-6). 

Events during the first quarter 

•  As planned, MQ has closed its store on Tullgatan, Malmö. 
•  MQ has remodelled its stores in Stenungsund and on Fredsgatan, Gothenburg in line with a new store concept. 
•  MQ and Joy have opened new stores at C4 Shopping in Kristianstad and in Mölndal Galleria. Joy has accordingly closed its stores in Kristianstad City and Mölndal.  
•  MQ has begun a collaboration with Daisy Grace.  
•  A decision has been made to close a further two Joy stores. 
•  Joy was named Store Retailer of the Year at the Habit Fashion Show 2018.  
•  On 29 November 2018, MQ issued a profit warning for the first quarter of 2018/2019.  

Events after the end of the reporting period 

•  A new Head of Sales has been recruited for MQ. 
•  MQ has signed a marketplace agreement with Afound.  

For further information, please contact:
Ingvar Larsson, President and CEO: +46 (0)31 388 80 70
Tony Siberg, Deputy CEO and CFO: +46 (0)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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 18 December 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 175 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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