Oslo, 16 July 2020: XXL delivered a growth of 31 per cent for the second quarter 2020 driven by improved performance and good market conditions. Focus during the quarter has been on cash flow generation through topline improvements, capturing markets shares and adapting to the strong demand in the market. EBITDA amounted to record high NOK 385 million (NOK 273 million). XXL generated strong cash flow in the period, with continued build down of inventory, leading to total liquidity reserves of NOK 987 million (NOK 499 million) and a net interest bearing debt of NOK 295 million (NOK 2 036 million).
XXL is starting to see the effect of a number of mid-term measures to strengthen the position as the leading omni-channel sports retail concept in the Nordics. This includes an upgrade of existing stores, further improvement of the category offering, improved marketing effectiveness and a reduced cost base.
Highlights
- Operating revenue of NOK 2 865 million (NOK 2 187 million), up 31 per cent
- Like for like growth of 28 per cent
- EBITDA of NOK 385 million (NOK 273 million)
- Liquidity reserves of NOK 987 million (NOK 499 million)
- Net interest bearing debt of NOK 295 million (NOK 2 036 million)
Outlook
XXL has signed 4 new lease agreements for store openings in 2020 where of 1 in Norway, 1 in Sweden and 2 in Austria. The new stores in Norway and Sweden opened in Q1 2020 and XXL opened a new store in Austria in Q2 2020. The final new store opening is planned for Q4 2020 in Austria.
In line with the existing growth strategy, XXL will continue to invest in new stores, E-commerce platform, existing stores, infrastructure and IT. Total CAPEX for XXL Group in 2020 is expected to be around NOK 150-180 million. Going forward XXL expects to slow down the pace of the store roll-out to 3-5 new stores per year and focus on new stores in Austria and some in Sweden. At the same time XXL will be downsizing several existing stores.
For further information please find attached the quarterly report and the presentation material. For APMs please see the quarterly report for further definitions and reconciliations.
The results will be presented at 08:30 CET by CEO Pål Wibe and CFO Stein Eriksen. The presentation will be held in English and will be webcasted at www.xxlasa.com.
Due to COVID-19 the presentation will be conducted only as a webcast.
For further queries, please contact:
Press contact Norway:
Marte Ramuz Eriksen
Email: presse@xxl.no
Phone: + 47 952 21 425
Press contact Sweden and International
Anders Andrén
Email: press@xxl.se
Phone: +46 76-133 99 40
Investor Relations
Tolle O. R. Grøterud
XXL ASA
Tel: +47 90 27 29 59
E-mail:ir@xxlasa.com
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act
About XXL ASA
XXL is a leading sports retailer with stores and e-commerce in Norway, Sweden, Finland, Denmark and Austria. It is the largest among the major sports retailers in the Nordics. XXL pursues a broad customer appeal, offering a one stop shop experience with a wide range of products for sports, hunting, skiing, biking and other outdoor activities. XXL’s concept is to have the largest stores with the best prices and the widest assortment of products, focusing on branded goods.