Oslo, Norway, 14 June 2022: XXL ASA (“XXL”) today announces that revenue so far in the second quarter 2022 is lower than last year, driven by weakening consumer sentiment and somewhat reduced demand for sporting goods in general. Total operating revenues for the Group in Q2 2022 is expected to be around NOK 2.2 billion compared to NOK 2.4 billion last year. Higher campaign activity will impact the gross margin which is expected to be around 38-39 per cent (41.8 per cent). EBITDA is estimated to be in the range of NOK 190 – 220 million (NOK 392 million). This could change as the last weeks of June are important sales weeks.
XXL has flexibility in its purchasing agreements and will adjust volumes to sales, and are taking several short-term actions to adapt cost levels. The previously communicated strategy and outlook statement remains unchanged.
XXL will present the actual second quarter 2022 figures on 15 July 2022.
For further queries, please contact:
Investor Relations:
Tolle O. R. Grøterud
Tel: +47 90 27 29 59
E-mail: ir@xxlasa.com
Press contact:
Andreas Nyheim
Tel: + 47 952 11 779
E-mail: 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. This announcement was published by Tolle Grøterud, Investor Relations Officer, on 14 June 2022 at the time set out above.
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.
Alternative Performance Measures (APM)
Certain financial measures and ratios related thereto in this release, including gross margin and EBITDA (collectively, the “Non-GAAP Measures”), are not specifically defined under IFRS or any other generally accepted accounting principles. These measures are presented in this release because they are among the measures used by Management to evaluate the cash available to fund ongoing, long-term obligations and they are frequently used by other interested parties for valuation purposes or as a common measure of the ability of a company to incur and meet debt service obligations. These measures may not be comparable to other similarly titled measures of other companies and are not measurements under IFRS or other generally accepted accounting principles, and you should not consider such items as alternatives to profit for the year, total operating revenues, operating income or any other performance measures derived in accordance with IFRS, and they may be different from similarly titled measures used by other companies. Please also see our quarterly reports for further information, reconciliations and historical figures.
Gross profit represents operating revenue less cost of goods sold. Gross margin is gross profit in per cent of revenue.
EBITDA - Earnings before interest, tax, depreciation and amortization. EBITDA is a key financial parameter for XXL. EBITDA represents operating income plus depreciation.