MQ: Interim report second quarter 2015/16 - MQ acquires retail-clothing company JOY

Regulatory News:

MQ acquires JOY, a nationwide retail-clothing company with 54 stores and sales of SEK 258 million for the 2015 financial year. There is substantial potential to develop JOY as a strong retail concept for the target group of midlife women with strong buying power. The acquisition is in line with the MQ Group’s long-term strategy to generate growth and advance its position as a player in the fashion industry.

Second quarter (December 2015–February 2016)

• Net sales amounted to SEK 433 million (417), up 3.8 percent. Like-for-like sales increased 2.5 percent (according to the Swedish Retail Institute Index, the market’s comparable stores grew 1.9 percent).
• Gross margin was 47.6 percent (50.0).
• Operating profit was SEK 16 million (26), corresponding to an operating margin of 3.6 percent (6.2).
• Profit after tax was SEK 12 million (19), corresponding to SEK 0.34 (0.55) per share after dilution.
• Cash flow from operating activities was SEK 45 million (60).

First six months (September 2015–February 2016)

• Net sales amounted to SEK 815 million (774), up 5.3 percent. Like-for-like sales increased 4.6 percent (according to the Swedish Retail Institute Index, the market’s comparable stores grew 4.0 percent).
• Gross margin was 53.3 percent (55.1).
• Operating profit was SEK 57 million (65), corresponding to an operating margin of 7.0 percent (8.3).
• Profit after tax was SEK 44 million (49), corresponding to SEK 1.25 (1.38) per share after dilution.
• Cash flow from operating activities was SEK 46 million (70).

Events during the second quarter

• In menswear, the brands Replay, Lacoste, Knowledge Cotton Apparel and Scotch & Soda were introduced to the in-store collection. In womenswear, Boomerang, Dry Lake and Didrikssons were launched in stores.
• MQ Shop Online launched Richmond & Finch, Sophie by Sophie, Selected Homme, Replay Women, Ichi, Boomerang, Custommade, Pelle P and Lacoste Women during the second quarter
• MQ acquired for the formerly licensed Bondelid brand to the cost of 10 million during the quarter.

Events after the end of the reporting period

• MQ acquired JOY, a nationwide retail-clothing company with 54 stores and sales of SEK 258 million. The potential in the company and the 50+ target group is vast and complements MQ’s target group. Women in the 50+ age group account for more than 50 percent of the Swedish women’s fashion retail market and are today the market’s fastest growing customer group.

MQ is Sweden’s leading brand chain. 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 .

This information was brought to you by Cision http://news.cision.com

View source version on businesswire.com: http://www.businesswire.com/news/home/20160316006607/en/