Leading retailer sees stable trend in a weak market

12 Oct '11

2 min read

MQ Holding AB announced fourth quarter & full year-end report.

Fourth quarter (June 2011- August 2011)
• Net sales amounted to SEK 358 million (350), up 2.2 percent. Sales in comparable stores fell 2.8 percent. (The Swedish Retail Institute Index declined 5.2 percent).
• The gross margin was 54.8 percent (52.3).
• Operating profit amounted to SEK 21 million (24), corresponding to an operating margin of 5.8 percent (6.8).
• Profit after tax amounted to SEK 11 million (8), corresponding to SEK 0.32 (0.24) per share after dilution.
• Cash flow from operating activities was negative in the amount of SEK 4 million (neg: 17).

12-month period (September 2010-August 2011)
• Net sales amounted to SEK 1,487 million (1,435), up 3.6 percent. Sales in comparable stores fell 1.3 percent. (The Swedish Retail Institute Index declined 3.7 percent).
• The gross margin was 57.3 percent (57.9).
• Operating profit amounted to SEK 121 million (145), corresponding to an operating margin of 8.1 percent (10.1). The operating profit was impacted by severance pay for the former CEO and purchasing manager totalling SEK 8 million.
• Profit after tax amounted to SEK 77 million (72), corresponding to SEK 2.19 (2.86) per share after dilution.
• Cash flow from operating activities was SEK 103 million (108).
• The Board proposes a dividend of SEK 1.10 (1.02) per share, corresponding to 50 percent of the year's profit after tax.

Events during the fourth quarter
A new store was opened in Skien, Norway.
The new Dobber brand was launched.
An Extraordinary General Meeting was held, where the Meeting resolved to adopt the Board's proposal to establish a long-term, share-based incentive programme, 2011/2014.

Events after the end of the reporting period
• Mats Gärdsell assumed the position of CEO on 3 October.
• Peter Karlson assumed the position of Head of Logistics and Sourcing on 3 October. Peter is a Board member.
• A new store was opened in Erikslund, Västerås.
• The incentive programme above, which was approved during the fourth quarter, came into effect after the end of the closing date. Accordingly, it had no impact on the September - August 2010/2011 financial accounts.

MQ is one of Sweden's leading retailers of fashion brands. 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 113 stores and the aim is to establish MQ as the leading retailer of fashion brands in the Nordic region.

MQ Holding AB

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