The strong growth of XXL ASA continued in the third quarter 2015 with a growth rate of 24 per cent compared to the same quarter last year. The Swedish operation achieved significantly improved margins compared to last year and a like-for-like growth of 4.2 per cent in local currency. Finland continued to take market position combined with yet another quarter with positive EBITDA. The growth from E-commerce for the Group was 68 per cent in the quarter. Among Norwegian consumers XXL was voted number 8 of 112 large enterprises on criteria such as sustainability, ethics and profitability.
Highlights
- Total revenues of NOK 1 753 million (NOK 1 416 million), up 24 per cent
- Like-for-like stores up 4.6 per cent
- E-commerce growth of 68 per cent
- Opened one new store in Finland
- Expansion of the central warehouse in Sweden progressing according to plan
Outlook
XXL has opened 4 new stores year to date and intends to open 4 additional stores in the fourth quarter 2015. There will be store openings in all three markets. One of the stores will open in Charlottenberg (Sweden) on the border between Norway and Sweden, branded as XXL Outlet.
The main share of the future growth will be outside Norway. Finland is still under establishment but with good prospects of delivering positive EBITDA in 2015. Sweden had a good improvement in the margin in 2014 due to the new central warehouse. Margin improvement going forward will not be at the same pace as in 2014.
The Group maintains the following long term objectives (as compared to 2013 figures):
- Like-for-like growth of mid-single digits over time
- E-commerce share of total revenues of low double digits
- Gross margins to be stable. For Norway maintained at the same level, increasing to high 30’s in Sweden and Finland
- EBITDA-margin stable as a result of stable gross margins and operating expenses. In Norway at low 20’s, in Sweden low double digits and in Finland high single digits.
XXL has already signed 8 new lease agreements for new store openings and aims for 8-10 new stores in total for 2016.
For further information please find attached the quarterly report and the presentation material.
The results will be presented at 08:30 CET by CEO Fredrik Steenbuch and CFO Krister Pedersen. The presentation will take place at our headquarters in Oslo, Strømsveien 245, Alna Senter (entrance on the right side of Maxbo). The presentation will be held in English and will be webcasted at www.xxlasa.com. You may also follow the presentation live by telephone. Dial-in details: +47 21 56 33 18 (Norway) and +44(0) 20 3003 2666 (International), passcode – XXL Q3.
A replay will be available on www.xxlasa.com soon after the live presentation.
For further queries, please contact:
Tolle O. R. Grøterud, Head of Investor Relations, XXL ASA
Tel: +47 90 27 29 59
E-mail: ir@xxlasa.com
About XXL ASA
XXL is a leading sports retailer with stores and e-commerce in Norway, Sweden and Finland. It is the largest and the fastest growing among the major sports retailers in the Nordic. 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 lowest prices and the widest assortment of products, focusing on branded goods.