Oslo, 27 October 2020: In the third quarter 2020 XXL showed improved operational control under continued good market conditions. XXL delivered a growth of 14 per cent, especially strong in Norway with 21 per cent growth. This combined with higher gross margins lead to the best third quarter in XXLs history. EBITDA ended at NOK 413 million with all segments posting a positive development. XXL generated positive cash flow in the period, with continued build down of inventory, leading to total liquidity reserves of NOK 1 236 million (NOK 575 million) and a net interest bearing debt of NOK 45 million (NOK 1 872 million).
Short term XXL will continue to strengthen routines and to systematically work on seasonal execution and operational excellence. The financial situation with a solid balance sheet provide a foundation for longer term value creation.
Highlights
- Operating revenue of NOK 2 823 million (NOK 2 473 million), up 14 per cent
- Like for like growth of 10 per cent driven by Norway of 16 per cent
- Strong underlying gross margin in the quarter of 40.5% (37.3%)
- EBITDA of NOK 413 million (NOK 271 million)
- Solid balance sheet gives financial flexibility
Program to repurchase own shares
In accordance with the authorization to acquire own shares given at the Annual General Meeting on 4 June 2020, the Board of Directors of XXL ASA initiates a program to buy-back own shares. With reference to the resolution made by the Annual General Meeting on 4 June 2020 the share buy-back program is to optimize capital structure by cover for shares to the long term management investment program. The total number of shares to be acquired is of a value of around NOK 100 million. The highest price to be paid per share will be NOK 50, but shall in no event exceed the prevailing market price at the Oslo Stock Exchange on the relevant trading day. The shares will be purchased from the open market. The share buy-back program will commence on 28 October 2020 and will continue until 15 December 2020. In agreement with the bank consortium the RCF “corona” facility of NOK 300 million will be reduced with NOK 100 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 the pace of the store roll-out to be 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.