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The structural action programme is having an effect, but the quarter was characterised by lower sales

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There has been a lot of focus and attention during the quarter on the renewal of MQ with the launch of our first MarQet stores. The quarter has been characterised by lower sales as a result of less footfall in our stores in a challenging, campaign-intensive market. For MQ, however, the proprietary brand range has seen positive sales development, and our online shopping initiatives have produced results with a palpable increase in traffic and conversion rate. Our structural action programme is developing according to plan and has had a positive impact during the quarter of SEK 10 million.

 First quarter (September – November 2019)

  • Net sales amounted to SEK 373 million (402), down 7.3 per cent. Like-for-like sales declined 3.8 per cent (according to the Swedish Retail Institute Index, sales in the market’s comparable stores decreased by 2.5 per cent).
  • The gross margin was 61.4 per cent (61.0). During the quarter, non-recurring items affected the gross margin by 0,9 percentage (-).
  • Operating profit was SEK 13 million (12), which corresponds to an operating margin of 3.4 per cent (3.0).
  • Profit after tax for the period amounted to SEK 3 million (9), which equates to basic and diluted earnings per share of SEK 0.03 (0.25).
  • Cash flow from operating activities was SEK 39 million (-16). The stronger cash flow compared to the same quarter last year primarily relates to improved working capital and the effects of IFRS 16.
  • On 1 September 2019, MQ Holding AB changed its accounting policy for leases when it began to apply IFRS 16 Leasing. MQ Holding AB has decided to apply the simplified transition approach and not to make any retroactive recalculations of earlier periods. 

Events during the first quarter

  • MarQet launched its first two concept stores during the quarter, on Drottninggatan in Stockholm and Fredsgatan in Gothenburg. The launch attracted extensive media attention.
  • During the quarter we launched new product categories and brands, so as to strengthen the customer offering in our MarQet stores.
  • MQ has launched a tuxedo package, which was well received by customers and the media alike.
  • Black Week occurred during the period, which saw stronger sales than last year at MQ and we also had higher sales in online shopping.
  • During the quarter, we closed three Joy stores: Triangeln in Malmö, Forumgallerian in Uppsala, and Stenungsund. We also closed MQ Sturegallerian in Stockholm. All of the stores were closed in accordance with the structural action programme
  • A decision was made to close the Joy store in Sergelgången, Stockholm.
  • The structural action programme is continuing and has boosted profit by SEK 10 million during the quarter. 

Events after the end of the reporting period

  • Since the end of the quarter, we have launched a further MarQet concept store: Emporia in Malmö.

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 person set out above, on 18 December 2019 at 07:15 CET.  

MQ Holding AB owns and runs retail stores specialised in fashion and accessories under the three business areas Marqet, MQ and Joy. In 2020, all MQ's stores will be converted into concept stores under the name Marqet. Marqet is a concept store chain that offers women's and men's fashion and new exciting product categories adapted for a contemporary work-life. MQ is Sweden's largest brand chain with a mix of own and external brands and offers a wide range of apparel for men and women with a high interest in fashion. Joy focuses on midlife women interested in fashion, which keeps valuing high quality, fit and comfort. The three business areas comprise 159 stores and e-commerce. The MQ Holding stock has been listed at NASDAQ OMX Stockholm since June 18, 2010. For further information, see www.mq.se

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