BORÅS, Sweden--(BUSINESS WIRE)--Regulatory News:
The MQ Group has experienced an intense year of development. The earnings trend was not in line with our expectations, due to the weak trend in the gross margin. At the same time, we have taken several important steps in the right direction to develop the company. A new store concept for MQ stores has been developed. The transition to a more digital future has intensified. Retail-clothing company Joy was acquired and the closure of the Norwegian operations has now begun. Key decisions were made to build the company for the future.
Joy is included in the consolidated statements starting from May 2016.
Fourth quarter (June 2016-August 2016)
- Net sales amounted to SEK 487 million (421), up 15.8 percent. Like-for-like sales declined 0.7 percent (according to the Swedish Retail Institute Index, the market’s comparable stores grew 1.6 percent).
- Gross margin was 49.9 percent (53.3).
- Operating profit was SEK 31 million (47), corresponding to an operating margin of 6.4 percent (11.2).
- Profit after tax was SEK 27 million (36), corresponding to SEK 0.76 (1.02) per share after dilution.
- Cash flow from operating activities was SEK 40 million (22).
Full-year (September 2015-August 2016)
- Net sales amounted to SEK 1,681 million (1,557), an increase of 8.0 percent. Like-for-like sales increased 1.7 percent (according to the Swedish Retail Institute Index, the market’s comparable stores grew 1.9 percent).
- The gross margin was 54.0 percent (55.8).
- Operating profit amounted to SEK 121 million (158), corresponding to an operating margin of 7.2 percent (10.2).
- Profit after tax was SEK 95 million (120), corresponding to SEK 2.70 (3.42) per share after dilution.
- Cash flow from operating activities was SEK 95 million (137).
- The Board proposes a dividend of SEK 1.75 (1.75) per share, corresponding to 65 percent of profit after tax for the year.
Events during the fourth quarter
- The closing of the Norwegian operations began and the store in Drammen was closed on 20 August.
- New labels such as Beck Söndergaard, Lexington and Minimum were launched on MQ Shop Online during the fourth quarter.
- Pernilla Siewertz was recruited as the Head of HR for the Group.
- The MQ store in Sundsvall city centre was re-established and re-opened at a new, improved location.
Events after the end of the reporting period
- MQ was nominated for the award of Interior Design Concept of the Year at the Habit Modegalan fashion awards.
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 177 stores as well as online shopping. The MQ Holding share has been listed on Nasdaq Stockholm since 18 June 2010. For more information, see www.mq.se
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