Strong performance on a weak market, MQ

28 Jun '11

2 min read

MQ, one of Sweden's leading fashion brand retail chains, announced interim report, a strong performance on a weak market.

Third quarter (March 2011-May 2011)

• Net sales amounted to SEK 347 million (319), up 8.8 percent. Like-for-like sales rose 3.5 percent. (The Swedish Retail Institute Index was down 4.1 percent).
• Gross margin was 62.5 percent (65.7).
• Operating profit totalled SEK 32 million (39), including redundancy payments of 8 million, corresponding to an operating margin of 9.1 percent (12.1). Excluding redundancy payments, operating profit amounted to SEK 40 million, corresponding to an operating margin 11.5 percent
• Profit after tax amounted to SEK 23 million (20) including redundancy payments of SEK 8 million, corresponding to SEK 0.66 (0.88) per share after dilution. Excluding redundancy payments, profit after tax totalled SEK 31 million, corresponding to SEK 0.90 per share after dilution
• Cash flow from operating activities was SEK 38 million (16)

Nine-month period (September 2010-May 2011)

• Net sales amounted to SEK 1,129 million (1,085), up 4.0 percent. Like-for-like sales dipped 0.8 percent. (The Swedish Retail Institute Index was down 3.2 percent)
• Gross margin amounted to 58.0 percent (59.8)
• Operating profit amounted to SEK 100 million (121), corresponding to an operating margin of 8.9 percent (11.1).
• Profit after tax amounted to SEK 66 million (64), corresponding to SEK 1.87 (2.85) per share after dilution.
• Cash flow from operating activities was SEK 107 million (125)

Events during the third quarter

• Johan Elfner stepped down from his position as CEO of MQ. The company's CFO and Deputy CEO, Tony Siberg will act as interim CEO until a new CEO is appointed.
• A new store opened in Åkersberga, outside Stockholm.
• Cooperation with the Frankenstein advertising agency commenced.

Events after the end of the reporting period

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

MQ is one of Sweden's leading fashion brand retail chains. Through a select mix of proprietary and external brands, MQ offers men's and women's collections with a high fashion content in attractive stores. The company currently has a network of 112 stores and its goal is to be the leading fashion brand retail chain in the Nordic region.

More Apparel/Garments News - Sweden...