MQ: Strong Sales Growth in the Quarter

Regulatory News:

MQ’s sales trend was strong during the third quarter when sales in comparable stores/online increased 4.3 percent. According to the Swedish Retail Institute Index (HUI), the market for like-for-like sales declined 3.4 percent in the same period. Continued strengthening of the product range with more brands and a higher degree of fashion content have advanced MQ’s fashion position. Earnings continue to develop positively and the net debt is historically low. It is gratifying to state that the development work is generating results on several levels.

Third quarter (March 2015–May 2015)

• Net sales amounted to SEK 363 million (350), up 3.7 percent. Sales in comparable stores/online rose 4.3 percent (the market’s like-for-like sales declined 3.4 percent according to the Swedish Retail Institute Index).
• The gross margin was 60.1 percent (61.3).
• Operating profit amounted to SEK 47 million (42), corresponding to an operating margin of 12.8 percent (12.0).
• Profit after tax was SEK 36 million (31), corresponding to SEK 1.01 (0.90) per share after dilution.
• Cash flow from operating activities was SEK 46 million (63).

Nine-month period (September 2014-May 2015)

• Net sales amounted to SEK 1,137 million (1,139), down 0.2 percent. Sales in comparable stores/online rose 0.7 percent (the market’s like-for-like sales declined 1.7 percent according to the Swedish Retail Institute Index).
• The gross margin was 56.7 percent (56.6).
• Operating profit amounted to SEK 111 million (97), corresponding to an operating margin of 9.8 percent (8.6).
• Profit after tax was SEK 84 million (70), corresponding to SEK 2.39 (2.02) per share after dilution.
• Cash flow from operating activities totalled SEK 115 million (118).

Events during the third quarter

• MQ Shop Online was launched in the Norwegian market in March.
• The external brands Part Two, Bruuns Bazaar BZR and Dry Lake were launched on MQ Shop Online.

Events after the end of the reporting period

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

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 120 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/20150615006592/en/