MQ reports strong sales growth and further earnings improvement

MQ continued to report a positive sales trend, further increasing its sales during the quarter. The company’s earnings trend also remained positive. MQ’s commercial development work was intensified during the autumn, resulting in both new and refurbished stores, expanded market communication and continued development of the product range.

First quarter (September 2015-November 2015)

• Net sales amounted to SEK 382 million (357), up 7.0 percent. Like-for-like sales increased 7.1 percent (according to the Swedish Retail Institute Index, the market grew 6.1 percent).
• The gross margin was 59.7 percent (61.0).
• Operating profit was SEK 42 million (39), corresponding to an operating margin of 10.9 percent (10.9).
• Profit after tax was SEK 32 million (29), corresponding to SEK 0.92 (0.83) per share after dilution.
• Cash flow from operating activities was SEK 3 million (10).

Events during the first quarter

• MQ opened two stores: one in Norrtälje and one in the Mall of Scandinavia.
• MQ’s first flagship store in Norway opened in Grensen, Oslo.
• The external brands Happy Socks, Franklin & Marshall and Maria Westerlind were launched on MQ Shop Online.
• Mountain Works and Loungewear by 365 were launched in stores.

Events after the end of the reporting period

• No events occurred after the end of the reporting period.

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 121 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.