Oslo, 27 April 2022: XXL gained market shares in all markets in the first quarter 2022, despite challenging winter conditions for the sport industry overall. Under these circumstances XXL delivered a negative like for like growth of 8.5 per cent and total operating revenue in the quarter ended at NOK 2.0 billion (NOK 2.2 billion). Revenue development improved during the quarter with growth in all markets in March. Gross margin decreased to 38.0 per cent (40.4 per cent) in the quarter due to more clearance activities in the market as well as higher freight costs. XXL’s target of above 39 per cent gross margin over time remains. EBITDA amounted to NOK 75 million (NOK 207 million).
XXL has secured good supply of products and is well prepared for the upcoming spring and summer season.
Highlights:
- Gaining market shares during challenging winter conditions
- Operating revenue of NOK 1 984 million (NOK 2 166 million)
- Gross margin of 38.0 per cent (40.4 per cent) – target of above 39 per cent remains
- EBITDA of NOK 75 million (NOK 207 million)
- Well prepared for the upcoming spring season
CEO Pål Wibe says:
• After a strong fourth quarter, the winter conditions were more challenging in the first months of 2022. However if we look at the entire winter season from November to March winter sales have been OK.
• We are pleased to have gained market shares in all Nordic markets. Our ambition is to continue to gain market share over longer periods of time.
• We are well prepared for the summer, with lots of bikes and other summer goods in stock.
• The XXL concept is all about strong brands, the widest selection of categories and the lowest prices in the market. This concept has historically been performing very well also in more uncertain times.
• In addition to this, we also work continuously to develop and renew XXL. We have recently launched second-hand sale of tents and other outdoor equipment and we also test out rental of ski touring equipment.
Outlook
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.
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.