MQ: Focus on growth in Sweden

Regulatory News:

Joy is included in the consolidated statements starting May 2016.

Third quarter (March 2016–May 2016)

• Net sales amounted to SEK 379 million (363), up 4.4 percent. Like-for-like sales declined 3.4 percent (according to the Swedish Retail Institute Index, the market’s comparable stores grew 1.7 percent).
• Gross margin was 60.9 percent (60.1).
• Operating profit was SEK 32 million (47), corresponding to an operating margin of 8.5 percent (12.8).
• Profit after tax was SEK 24 million (36), corresponding to SEK 0.68 (1.01) per share after dilution.
• Cash flow from operating activities was SEK 8 million (46).

Nine-month period (September 2015–May 2016)

• Net sales amounted to SEK 1,194 million (1,137), an increase of 5.0 percent. Like-for-like sales increased 3.0 percent (according to the Swedish Retail Institute Index, the market’s comparable stores grew 3.2 percent).
• Gross margin was 55.7 percent (56.7).
• Operating profit totalled SEK 90 million (111), corresponding to an operating margin of 7.5 percent (9.8).
• Profit after tax was SEK 68 million (84), corresponding to SEK 1.94 (2.39) per share after dilution.
• Cash flow from operating activities was 55 million (115).

Events during the third quarter

• Acquisition of retail-clothing company Joy was completed on 2 May and Joy Shop AB has now joined the MQ Group.
• MQ Group’s CEO Christina Ståhl assumes the additional role as President of Joy in conjunction with completion of the acquisition process.
• During the quarter, two new MQ stores opened in Vetlanda and Bollnäs.
• Femman in Gothenburg and MQ Outlet in Ullared have been remodelled, while Strömpilen in Umeå has been reestablished and recently opened in Gallerian Avion.
• New labels such as American Vintage, Butterfly Twist, Maidenform and Selected Femme were launched on MQ Shop Online during the third quarter.

Events after the end of the reporting period

• The decision has been made to close MQ’s Norwegian operations (four stores).
• To further reinforce our digital activities, the head of Omnichannel will also be in charge of the company’s marketing communications. The department will subsequently assume total responsibility for promoting integrated communication and optimised media presence, featuring mq.se as the hub of all communication.

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 select mix 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 178 stores as well as online shopping. The MQ Holding share has been listed on Nasdaq Stockholm since 18 June 2010. For more information, please visit our website at www.mq.se

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