Brief: XXL EBITDA Down At NOK 186 Mln

Xxl AS

27/10/2022 06:15

Oct 27 (Reuters) - XXL ASA  XXL.OL :
    * CHALLENGING MARKETS AND LOW CONSUMER CONFIDENCE PAYING ITS
TOLL
ON THE RESULTS
    * TOTAL OPERATING REVENUE OF NOK 2.3 BILLION (NOK 2.7
BILLION) IN
Q3 2022
    * SUDDEN HISTORICALLY LOW CONSUMER CONFIDENCE AND REDUCED
DEMAND
FOR SPORTING GOODS IN GENERAL
    * PRIORITIZED STRICT LIQUIDITY MANAGEMENT WITH SALES AND
INVENTORY
ACTIONS OVER GROSS MARGINS
    * JULY SALES WERE ALSO HAMPERED BY INCREASED CONSUMPTION OF
TRAVEL
AND SERVICES AFTER PANDEMIC
    * HIGHER CAMPAIGN ACTIVITY AND SOURCING COSTS IMPACTED GROSS
MARGIN WHICH ENDED AT 35.0 PER CENT (38.9 PER CENT)
    * EBITDA IN QUARTER AMOUNTED TO NOK 186 MILLION (NOK 336
MILLION)
    * XXL IS NOT SATISFIED WITH RESULTS
    * BELIEVES IT WILL BENEFIT FROM ITS CONCEPT OF OFFERING
GREAT
ASSORTMENT OF GREAT BRANDS AT LOWEST PRICES IN MARKET
    * LONGER-TERM TARGET IS "40-30-10" ON GROSS MARGIN, OPEX AND
EBITDA RESPECTIVELY AND WHEN EXCLUDING IFRS 16 EFFECTS
    * 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
200-250 MILLION
    * EXPECTS PACE OF STORE ROLL-OUT TO BE 2-3 NEW STORES PER
YEAR
    * HAS CLOSED TWO OUTLET STORES, TÖCKSFORS AND NORDBY IN
SWEDEN,
DURING 2022
    * IN AUSTRIA A STORE WILL BE CLOSED DURING Q1 2023
    * INTENDS TO MOVE OUT OF CENTRAL WAREHOUSE FACILITY DURING
2023
    * WILL BE DOWNSIZING SEVERAL EXISTING STORES, MAINLY IN
SWEDEN

Source text for Eikon:  ID:nObipmdqsa 
Further company coverage:  XXL.OL 
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