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XXL ASA – Third Quarter 2014 results – Continued growth in all markets
Oslo, 6 November 2014: XXL ASA delivered a strong growth of 31 per cent in the third quarter 2014. The growth is driven by all markets with growth from new stores, existing stores and e-commerce. A combination of higher gross margins despite Finland establishment and strong cost control resulted in higher adjusted EBITDA margin than last year. Operating expenses before one-offs is at 27 per cent of operating revenue for the quarter.
Highlights
- Total revenues of NOK 1 416 million (NOK 1 081 million), up 31 per cent
- EBITDA increased by 26 per cent to NOK 169 million
- Comparable EBITDA increased by 35 per cent to NOK 176 million
- Like-for-like stores up 6.7 per cent and E-Commerce up 74 per cent
- One new store in Finland
- Ramping up for four new stores in Q4 2014
Outlook
- Total operating revenue in October 2014 grew by 29 per cent, to NOK 382 million.
- The Group expects the growth in total operating revenue for 2014 to be above 28%.
- Group margins in Q4 have historically been higher than Q3 margins.
- XXL have already signed 6 new lease agreements for new store openings in 2015, and aims for 8-10 new stores in total. The Group expects the new store openings to be back-end loaded.
For further information please find attached the Q3 2014 report and the presentation material.
The results will be presented at 08:00 CET by CEO Fredrik Steenbuch and CFO Krister Fiksdal-Pedersen. The presentation will take place at our headquarters in Oslo, Strømsveien 245, Alna Senter. 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 - XXL2014.
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
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 and Finland. It is 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.
Important Notice
This announcement is not and does not form a part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company.
Copies of this announcement are not being made and may not be distributed or sent into the United States, Australia, Canada, Japan or any other jurisdiction in which such distribution would be unlawful or would require registration or other measures.
The securities referred to in this announcement have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act), and accordingly may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and in accordance with applicable U.S. state securities laws. The Company does not intend to register any part of the offering in the United States or to conduct a public offering of securities in the United States. Any sale in te United States of the securities mentioned in this announcement will be made solely to qualified institutional buyers as defined in Rule 144A under the Securities Act.
Any offering of the securities referred to in this announcement will be made by means of a prospectus. This announcement is not a prospectus for the purposes of Directive 2003/71/EC (as amended, together with any applicable implementing measures in any Member State, the Prospectus Directive). Investors should not subscribe for any securities referred to in this announcement except on the basis of information contained in a prospectus.
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This communication is only being distributed to and is only directed at persons in the United Kingdom that are (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the Order ) or (ii) high net worth entities, and other persons to whom this announcement may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as relevant persons ). This communication must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons. Persons distributing this communication must satisfy themselves that it is lawful to do so.
Matters discussed in this announcement may constitute forward looking statements. Forward looking statements are statements that are not historical facts and may be identified by words such as believe, expect, anticipate, strategy, intends, estimate, will, may, continue, should and similar expressions. The forward looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that these assumptions were reasonable when made, these assumptions are inherently subject to significant known and unknown risks, uncertainties, contingencies and other important factors which are difficult or impossible to predict and are beyond its control. Actual events may differ significantly from any anticipated development due to a number of factors, including without limitation, changes affecting the Company’s opening of new stores and net sales, changes affecting the Company’s gross margin, changes in competition levels, changes in the Company’s ability to manage inventory levels, changes affecting net sales, such as variations caused by weather and seasonality, changes affecting personnel expenses and other operating expenses, such as premises costs and marketing costs, changes in laws and regulation and the potential impact of legal proceedings and actions. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward looking statements. The Company does not guarantee that the assumptions underlying the forward looking statements in this presentation are free from errors nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or any obligation to update or revise the statements in this presentation to reflect subsequent events. You should not place undue reliance on the forward looking statements in this document.
The information, opinions and forward looking statements contained in this announcement speak only as at its date, and are subject to change without notice. The Company does not undertake any obligation to review, update, confirm, or to release publicly any revisions to any forward looking statements to reflect events that occur or circumstances that arise in relation to the content of this announcement.
The Managers are acting exclusively for the Company and the Selling Shareholders and no one else in connection with the Offering and assume no responsibility for this announcement.
None of the Managers or any of their respective directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for/or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Selling Shareholders or the Company, its subsidiaries or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of announcement or its contents or otherwise arising in connection therewith.