Oslo, 9 February 2022: XXL delivered a growth of 6 per cent in the fourth quarter 2021, with like for like growth of 9 per cent, and positive developments in all markets. Total operating revenue in the quarter ended at NOK 2.7 billion (NOK 2.6 billion) under good winter conditions as well as improved seasonal planning and execution. Consequently, gross margin in the quarter ended at 42.1 per cent (40.4 per cent). EBITDA amounted to NOK 403 million (NOK 327 million). The Swedish operations had a particular strong development, capturing market shares and having good progress on the “Sweden Full Potential” initiatives.
Highlights:
- Improved seasonal plan and execution
- Operating revenue increased to NOK 2 734 million (NOK 2 572 million)
- Gross margin improvement to 42.1 per cent (40.4 per cent)
- EBITDA increased 23 per cent, to NOK 403 million (NOK 327 million)
- Earnings per share (adj) for 2021 of NOK 1.31 – dividend proposal of NOK 0.60 per share
CEO Pål Wibe says:
- We have our Champions League final in December and performed really well. We have improved our seasonal plans and execution and also enjoyed good winter conditions. The entire organization has done a tremendous job to serve our customers under difficult circumstances.
- I am pleased with the development in Sweden with a growth of more than 20 percent in the quarter. We have taken significant market shares the last six months, and believe we see early effects from the “Sweden Full Potential” project that aims to improve our profitability.
- To summarize the year, we have increased our results from last year despite troubles with closed stores and a huge bike crisis. Norway and Finland deliver the strongest performance in XXL’s history, while Sweden has its second-best year. We still have many things that we can do better, but “the snowball” is rolling faster.
XXL has impaired its right of use assets related to the Austrian operation with a consequence of a write down of NOK 123 million, as well as write down of fixed assets related to the two Outlet stores in Sweden of NOK 13 million. The write downs have no cash effect. Adjusted for the write downs Net income for 2021 was NOK 330 million (NOK 126 million), and Earnings per share at NOK 1.31. XXL ended the year with a solid balance sheet and the liquidity reserves amounted to NOK 1.1 billion (NOK 1.1 billion).
The Board of Directors will propose a dividend of NOK 0.60 per share for the year 2021.
Outlook
Total operating revenues for the Group in January 2022 decreased by around 20 per cent to around NOK 720 million, compared to the record breaking 2021. The month was partly affected by change in winter conditions in most of the Nordic region as well as early start of the season moving sales between December 2021 and January 2022. In addition, January 2021 represents a strong comparator with more than 50 per cent growth vs. January 2020. Consequently the growth from January 2020 to January 2022 was 20 per cent.
XXL’s target and goal going forward is to over time gain market shares in all markets and continue the growth in the E-commerce channel.
XXL targets to long term stabilize the gross margin above 39 per cent.
In line with the existing strategy, XXL will continue to invest in operational efficiency, selective new store openings, E-commerce platform, existing stores, infrastructure and IT. Total CAPEX for XXL Group in 2022 is expected to be around NOK 250-300 million.
Going forward XXL expects the pace of the store roll-out to be 3-5 new stores per year. XXL has signed 3 new lease agreements for store openings in 2022, whereof 1 in Norway and 2 in Sweden. XXL is expected to close down two outlet stores, Töcksfors and Nordby in Sweden, during 2022. At the same time XXL will be downsizing several existing stores, mainly in Sweden. The Group will continue to focus on optimizing the store portfolio.
Restricted share units program for employees
In accordance with the resolution made by the Annual General Meeting in XXL ASA on 3 June 2021, a program of restricted share units for around 60 employees will take place. The amount of the program is around NOK 10 million worth of restricted shares to be distributed in total. The allocation price will be equal to the volume weighted average market price the next five trading days, starting today 9 February 2022 and ending 15 February 2022. The shares will vest after three years subject to the holder at the time of exercise is employed in XXL.
As previously disclosed, the restricted share units program for 2019 expire five days after the Q4 2021 report. Consequently, the exercise window open today 9 February 2022 and commence until 15 February 2022.
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.
For further queries, please contact:
Investor Relations:
Tolle O. R. Grøterud
Phone: +47 90 27 29 59
E-mail: ir@xxlasa.com
Press contact:
Andreas Nyheim
Phone: + 47 952 11 779
Email: presse@xxl.no
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to 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.