Sports retailer XXL warns on profits, will raise cash (updated)

Xxl AS

21/12/2022 06:48

(Adds quotes, detail)
       OSLO, Dec 21 (Reuters) - Norwegian sports retailer XXL
 XXL.OL  warned on Wednesday of weaker earnings margins and said
it will raise 500 million Norwegian crowns ($50.6 million) in
new equity, and plans to pull out of the Austrian market.
    "XXL's markets have continued to be challenging in the
fourth quarter 2022 driven by low consumer confidence and
reduced demand for sporting goods in general," the company said
in a statement.
        "The market is characterized by high inventory levels in
the whole value chain, resulting in aggressive pricing and
excessive campaign activities," it added.
  
        Operating revenue for the fourth quarter is expected to
be in the range of 2.3 billion-2.4 billion crowns, "with
significantly lower gross margins as a result of the company
focusing on liquidity", XXL said.
  
        The company estimated its earnings before interest, tax,
depreciation and amortisation (EBITDA) to amount to between 50
million and 100 million crowns for the October-December period,
down from 403 million a year ago.
  
($1 = 9.8840 Norwegian crowns)
 (Reporting by Terje Solsvik, editing by Stine Jacobsen)
 ((stine.jacobsen@thomsonreuters.com; +45 21 56 90 10;))