Brief: XXL Says Inventories Normalised In Q3, Still Expects Challenging Market

Xxl AS

27/10/2023 07:18

Oct 27 (Reuters) - XXL ASA  XXL.OL :
    * RESET & RETHINK INITIATIVES PROGRESSING WELL IN AN
UNSATISFACTORY THIRD QUARTER
    * FIVE MUST WIN BATTLES ARE EXPECTED TO DELIVER AN EBITDA
RUN-RATE
UPLIFT OF NOK 500-750 MILLION DURING NEXT 12-24 MONTHS.
    * XXL WILL HAVE NO MATERIAL OPERATIONS OR COMMITMENTS IN
AUSTRIA
AFTER YEAR END 2023.
    * XXL DELIVERED A NEGATIVE GROWTH OF 10 PER CENT IN Q3 2023
    * SPORTS AND OUTDOOR RETAIL MARKET CONTINUED TO BE
CHALLENGING AND
WAS IMPACTED BY REDUCED DEMAND
    * INVENTORY IS NOW BACK TO NORMALIZED LEVELS, PROVIDING
POTENTIAL
FOR A HIGHER GROSS MARGIN OVER TIME
    * MARKET REMAINS CHALLENGING, PRIMARILY DRIVEN BY REDUCED
DEMAND,
HIGH LEVELS OF DISCOUNTING AND EXCESSIVE INVENTORY IN VALUE
CHAIN.
    * EXPECTS MARKET TO REMAIN CHALLENGING AND UNCERTAIN GOING
INTO
2024 AND WITH GENERAL HIGH CAMPAIGN PRESSURE
    * TOTAL CAPEX FOR XXL GROUP IN 2023 IS EXPECTED TO BE AROUND
NOK
100-150 MILLION.

Source text for Eikon:  ID:nObif0SFGa 
Further company coverage:  XXL.OL 

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