Weak quarter with a focus on robust measures and the agreed right issue

It has been yet another challenging quarter for the Group and the period from December to February has been characterised by lower sales, chiefly due to the weaker development of our women’s range. The gross margin for the quarter has been adversely affected by a campaign-intensive market and price cuts. The measures taken in our structural action programme are considerable and have had a positive impact during the quarter of SEK 11 million.

 Second quarter (December 2019–February 2020)

• Net sales amounted to SEK 382 million (424), down 9.8 per cent. Like-for-like sales declined 5.9 per cent (according to HUI Research, like-for-like sales for the market as a whole increased by 0.1 per cent).
• The gross margin was 45.2 per cent (49.6).
• Operating profit/loss was SEK -287 million (-528), including a non-recurring item for writing down intangible assets of SEK -195 million (-500). Which corresponds to an operating margin of -75.2 per cent (-124.7).
• Profit/loss for the period amounted to SEK -232 million (-522), including a non-recurring item for writing down intangible assets of SEK -195 million (-500).  Which equates to earnings per share of SEK -21.96 (-14.86).
• Cash flow from operating activities was SEK 13 million (-7). The stronger cash flow compared to the same    quarter last year relates to the effects of IFRS 16.

First six months (September 2019–February 2020)

• Net sales amounted to SEK 755 million (826), down 8.6 per cent. Like-for-like sales declined 4.9 per cent (according to HUI Research like-for-like sales for the market as a whole declined by 1.2 per cent).
• The gross margin was 53.2 per cent (55.2).
• Operating profit/loss was SEK -275 million (-516), including a non-recurring item for writing down intangible assets of SEK -195 million (-500). Which corresponds to an operating margin of -36.4 per cent (-62.5).
• Profit for the period amounted to SEK -229 million (-514), including a non-recurring item for writing down intangible assets of SEK -195 million (-500). Which equates to earnings per share of SEK -21.70 (-14.61).
• Cash flow from operating activities was SEK 51 million (-23). The stronger cash flow compared to the same period last year relates to 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. For more information, see Note 1.

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 March 2020 at 07:15 CET.  

MQ Holding AB owns and operates fashion stores under two business areas: MarQet and Joy. MarQet is a chain of concept stores offering men’s and women’s fashions, as well as exciting new product categories adapted to the flexible way of working in the modern age Joy targets fashion-conscious women in midlife who desire excellent quality, fit and comfort. The two business areas currently comprise a total of 159 stores as well as online shopping. The MQ Holding share has been listed on the NASDAQ OMX Stockholm since 18 June 2010. For more information, see www.mq.se

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