SWEDEN: Healthy sales boost earnings at MQ Holdings
- Q4 net profit reaches SEK14m
- Gross margin at 49.6%
- Sales grow 5.3%
Swedish fashion retailer MQ Holding AB has booked an increase in second-quarter earnings, boosted by healthy sales in key months combined with early demand for spring fashion.
MQ said earnings are "significantly better" than the year-earlier period, increasing to SEK14m (US$2.2m) from $1m a year earlier. Gross margin widened slightly to 49.6% from 49.5% last year.
Net sales reached SEK417m, a 5.3% increase on SEK396m last year, while comparable store sales were up 3.4%.
MQ Holding AB - Interim report
March 21, 2014 02:24 AM Eastern Daylight Time
BORÅS, Sweden--(BUSINESS WIRE)--Regulatory News:
MQ captures market shares and delivers strong earnings increase
Healthy sales in key months combined with Christmas shopping and sales, as well as early demand for spring fashion generated a strong second quarter for MQ. Earnings are significantly better than the year-earlier period. The positive trend from the first quarter continued and improved during the second quarter.
Second quarter (December 2013-February 2014)
Net sales amounted to SEK 417 million (396), up 5.3 percent. Sales in comparable stores increased 3.4 percent (according to the Swedish Retail Institute Index, the market contracted by 0.4 percent.)
The gross margin was 49.6 percent (49.5).
Operating profit amounted to SEK 20 million (4), corresponding to an operating margin of 4.9 percent (0.9).
Profit after tax amounted to SEK 14 million (1), corresponding to SEK 0.40 (0.02) per share after dilution.
Cash flow from operating activities was SEK 49 million (34).
First six months (September 2013 - February 2014)
Net sales amounted to SEK 789 million (760), up 3.8 percent. Sales in comparable stores increased 1.6 percent (according to the Swedish Retail Institute Index, the market contracted by 1.3 percent.)
The gross margin was 54.5 percent (54.8).
Operating profit amounted to SEK 55 million (25), corresponding to an operating margin of 7.0 percent (3.2).
Profit after tax amounted to SEK 39 million (14), corresponding to SEK 1.12 (0.40) per share after dilution.
Cash flow from operating activities was 55 million (29).
Events during the second quarter
No significant events occurred during the second quarter.
Events after the end of the reporting period
MQ's brand portfolio strengthened in March with three new brands; Sail Racing, Ilse Jacobsen and A-One.
One store in Malmö closed; Malmö entré.
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 122 stores and the aim is to establish MQ as the leading retailer of fashion brands in the Nordic region. The MQ share is listed on NASDAQ OMX Stockholm since 18 June 2010. For more information, please visit our website at www.mq.se.
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President and CEO
Christina Ståhl, +46 (0)31 388 80 10
Deputy CEO and CFO
Tony Siberg, +46 (0)31 388 84 01
Original source: MQ Holding
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