Oslo, 25 October 2017: XXL ASA delivered a growth of 16 per cent for the third quarter 2017, driven by new stores and like-for-like growth of 6 per cent. The Swedish and Finnish operations showed the strongest improvements compared to last year. EBITDA for the Group amounted to NOK 252 million in the quarter, corresponding to 18 per cent growth and a stable margin of 10.4 per cent, despite the establishment of XXL in Austria. Group EBITDA adjusted for the start-up in Austria were NOK 268 million, corresponding to a margin of 11.1 per cent. XXL has been well received by the Austrian consumers both in the store and online, proving the uniqueness of the XXL concept.
Highlights Q3 2017
- Total revenues of NOK 2 417 million (NOK 2 080 million), up 16 per cent
- Like-for-like growth of 6 per cent
- EBITDA of NOK 252 million (NOK 214 million)
- Solid results driven by Sweden and Finland
- Launch in Austria proving the strength of the XXL concept
Outlook
XXL has signed 11 new lease agreements for store openings in 2017 where of 1 in Norway, 4 in Sweden, 4 in Finland and 2 in Austria. This includes 6 stores that XXL had opened by the end of Q3 2017.
XXL has already signed 5 new lease agreements for future store openings in 2018 and aims for 7-10 new stores in total for 2018. XXL will at all time evaluate the trend of E-commerce growth compared to opening of new stores. The required market size for a new store will be increased.
To continue the growth strategy, within both stores and E-commerce, and in new markets as well as existing markets, XXL will invest in infrastructure, IT and training facilities. These investments are expected to be in the range of NOK 70-90 million for 2017. In addition XXL has refurbished two stores with CAPEX similar to two new stores.
The Group maintains the following long term objectives (on full year basis):
- Like-for-like growth of mid-single digits over time including E-commerce
- Gross margins to be stable. In Norway at low 40’s, high 30’s in Sweden and between mid and high 30’s in Finland. Due to the demanding macro in Finland the lift to high 30’s may take longer time than in Sweden
- 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. Due to the demanding macro in Finland the lift to high single digits may take longer time than in Sweden.
Austria – average sale per store is expected to be around EUR 12 million, while the gross margin and EBITDA-profile will be as in Sweden over time when excluding for the build up of a centralized organization for buying and support. Hence, the start-up in Austria will have higher costs than the launch in Sweden, Finland and Denmark. CAPEX per store will be in the range of EUR 1.7-1.9 million and the average pay-back per store is estimated to 4-5 years including net working capital. The average pay-back time is after being some time in the market, following an establishing period. XXL expects between 15-20 stores in total in the Austrian market.
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.
For further queries, please contact:
Tolle O. R. Grøterud
Investor Relations 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 and the fastest growing among the major sports retail chains in the World. 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.