XXL delivered a growth of 7 per cent in the first quarter 2025 driven by progress in the “Reset & Rethink” strategy. Total operating revenue amounted to NOK 1.7 billion (NOK 1.6 billion) as XXL continued to see sales recovery. All markets and sales channels contributed to the growth, despite muted winter conditions, as XXL managed to compensate reduced winter sales with growth in non-seasonal categories. The general availability of products improved in the quarter, driven by increased quantities of products on lower price points, especially within Private Label. The inventory was stable in value, and EBITDA amounted to NOK 12 million (NOK 12 million).
In the quarter XXL closed its rights issue of NOK 600 million, and subsequently paid down a bridge loan facility of NOK 300 million, to support efforts in regaining top line growth and continue to deliver on XXL’s “Reset & Rethink” plan. Looking ahead, XXL will remain committed to execute on its turnaround agenda to restore profitability by utilizing all available measures to strengthen its position as the leading mass-market sports retailer in the Nordics.
Highlights:
- Total operating revenues of NOK 1.7 billion (NOK 1.6 billion) as sales recovery continues with growth in all markets and sales channels
- Increased sales resilience driven by strengthened campaign execution and activation of non-seasonal categories to compensate for lower sales of seasonal winter products
- Positive EBITDA of NOK 12 million (NOK 12 million)
- New cost and capital out target of gross NOK 300 million and continuing to implement turnaround plan
CEO Freddy Sobin says:
" We are pleased to see that our renewed focus on delivering value for money and staying relevant to the mass market is driving growth across all our markets. For the first time in two years, we are back to top-line growth, a clear sign that our Reset & Rethink strategy is gaining traction. Customers appreciate our updated offering, where improved product availability, competitive price points, and enhanced services in our workshops with repairs create real value. This, combined with strengthened partnerships with our brand partners and strict cost discipline, puts us in a solid position to continue growing – with profitability now in clear focus."
Outlook
XXL is currently working on several short-term turnaround actions and a longer-term strategic plan, called “Reset & Rethink”, in order to improve sales and profitability. Five must win battles are identified and is currently in execution as part of the “Reset”:
- Reset category strategies
- Secure product availability
- Improve store sales strategies and operations
- Strengthen pricing processes
- Increase e-commerce profitability
The identified must win battles are expected to deliver an EBITDA run-rate uplift of NOK 500-750 million, conditional of sufficient availability of products in key seasonal categories and positive market development for sporting and outdoor goods in the Nordics. XXL has launched further ambitions to reduce cost and free up capital with a target of gross NOK 300 million by 2026.
XXL’s target and goal moving forward is to come back to sound profitability as well as over time gain market shares in all markets and regain growth in the E-commerce channel. XXL will continue to emphasize strict liquidity control and stock management by prioritizing sales volume over gross margin optimization, due to risk of material liquidity constraints.
In line with the existing strategy, XXL will continue to mainly invest in operational efficiency, store footprint optimization, customer experience enhancing projects in both stores and in the E-commerce platform, as well as in IT and tech. Total CAPEX for XXL Group in 2025 is expected to remain at around NOK 100 million.
XXL has thus far one new store opening signed for 2025 as well as one store closure. Mid- to long-term XXL continues to expect the pace of the store roll-out to be 2-3 new stores per year including relocations of stores. At the same time XXL will be downsizing several existing stores. Short term the Group will continue to focus on optimizing the store portfolio, including evaluation of selective closures of low performing stores with limited turnaround abilities.
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 Freddy Sobin and CFO Lars Syse Christiansen. 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: +47 902 72 959
E-mail: ir@xxlasa.com
Press:
Jan Christian Thommesen
Phone: + 47 918 21 387
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. This stock exchange announcement was published by Tolle O. R. Grøterud, Investor Relations Officer at XXL ASA, on 29 April 2025 at 07:00 CEST.
About XXL ASA
XXL is a leading sports retailer with stores and e-commerce in Norway, Sweden and Finland. 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.