XXL slumps on Q2 profit warning up to 50% below to consensus

Xxl AS

15/06/2022 08:58

** Shares of XXL  XXL.OL  tumble 19% after the Norwegian
sporting goods retailer issued a profit warning with Q2 EBITDA
up to 50% below consensus  urn:newsml:reuters.com:*:nFWN2Y10VA
    ** XXL expects Q2 EBITDA in the range of NOK 190-220 million
 ($19.05-22.06 million), 42-50% below consensus estimates
according to DNB markets 
    ** It sees total operating revenue for Q2 falling about 10%
to around NOK 2.2 billion from a year earlier, citing weakening
consumer sentiment and somewhat reduced demand for sporting
goods in general
    ** Analysts at Nordea say the new guidance implies cuts of
18-20% to their 2022 EBITDA estimates, while DNB Markets expects
consensus to fall by 14-16%
    ** "We are concerned that the softening retail sentiment
might hamper demand for sporting goods for the remainder of the
year, which could indicate further downside to consensus," DNB
says
    ** The stock, down 49% YTD, is on track for its worst day in
over two years

($1 = 9.9749 Norwegian crowns)

 (Reporting by Ina Kreutz)
 ((ina.kreutz@thomsonreuters.com))