In the fourth quarter 2020 XXL improved its seasonal execution and operational performance resulting in a growth of 11 per cent and strong gross margins.Norway is standing out with a growth of 20 per cent. Changing consumer behavior towards online platforms resulted in a growth of 57 per cent on e-commerce in the quarter. Highlights from the quarter: o Operating revenue ofNOK 2 572 million (NOK 2 319 million), up 11 per cent o Like for like growth of 9 per cent driven byNorway of 18 per cent, and e-com growth of 57% o Strong gross margin in the quarter of 40.4% (21.4%) o EBITDA ofNOK 327 million (negative ofNOK 209 million ) o Restatement of 2019 and 2020 figures related to supplier bonuses CEOPål Wibe says: "Norway is our largest and most important market, and the fourth quarter was a real "home win". Sales increased 20 percent compared to the same quarter last year, and we are gaining market shares from our competitors. We have improved our offering in the most important winter sports, and the pandemic has also led to a sharp increase in categories such as home training and outdoor activities." "The last months have been a rollercoaster, with closed stores both inNorway andAustria . Luckily, we have managed to see opportunities in the crisis. For instance, we have convinced more customers to shop online - safe and easy. I am proud of the effort our colleagues have put in during the last year, and especially the last weeks. Now, we are reopening stores again and hopefully we are closer to the end of the pandemic." XXL ended the year with solid balance sheet with total liquidity reserves ofNOK 1 111 million (NOK 833 million ) and a net interest bearing debt ofNOK 71 million (NOK 1 224 million). XXL works on several strategic initiatives to increase operational efficiency that over time should contribute to increasing market shares, strengthening the e-commerce channel, and stabilizing the gross margins from current levels. Outlook Total operating revenues for the Group inJanuary 2021 increased by around 50 per cent to aroundNOK 900 million , with especially strong growth on e-commerce growing more than 100 per cent. The month was positively affect by good winter conditions all over the Nordic region, but somewhat negatively affected by covid-19 restrictions imposed by both Austrian and Norwegian authorities. XXL's ambitions going forward is to over time gain market shares in all markets, and continue the growth in the e-commerce channel. XXL targets to strengthen and stabilize the gross margin further from the current levels. In line with the existing strategy, XXL will continue to invest in operational efficiency, new stores, e-commerce platform, existing stores, infrastructure and IT. Total CAPEX forXXL Group in 2021 is expected to be aroundNOK 250-300 million . Going forward XXL expects the pace of the store roll-out to be 3-5 new stores per year. XXL has signed 2 new lease agreements for store openings in 2021 where of 1 inSweden and 1 inAustria . At the same time XXL will be downsizing several existing stores. Restricted share units program for employees In accordance with the resolution made by the Annual General Meeting inXXL ASA on4 June 2020 , a program of restricted share units for around 60 employees will take place. The amount of the program is aroundNOK 10 million worth of restricted shares to be distributed in total. The allocation price will be equal to the volume weighted average market price the next five trading days, starting today5 February 2021 and ending11 February 2021 . The shares will vest after three years subject to the holder at the time of exercise is employed in XXL. As previously disclosed, the share incentive programs from 2018 expire five days after the Q4 2020 report. Consequently, the exercise windows for vesting share options and restricted share units open today5 February 2021 and commence until11 February 2021 . For the share option program for 2018, in total 563,846 share options will lapse without any exercise for the participants. The following primary insiders have after the above mentioned reduced the number of share options with 70,481 each and holds after this the following number of shares and share options inXXL ASA : - Tolle O. R. Grøterud, EVP HR, Corporate Communication and Sustainability, holds 3,187 shares in XXL Management Invest AS, 48,137 shares inXXL ASA and no share options inXXL ASA including ownership of closely related parties. -Espen Terland , EVP IT, holds 1,195 shares in XXL Management Invest AS, 37,945 shares inXXL ASA and no share options inXXL ASA including ownership of closely related parties. -Harald Borgen , EVP Supply chain, holds 1,195 in XXL Management Invest AS, no shares inXXL ASA and no share options inXXL ASA including ownership of closely related parties. 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 at08:30 CET by CEOPål Wibe and CFOStein Eriksen . The presentation will be held in English and will be webcasted at www.xxlasa.com. Due to COVID-19 the presentation will be conducted only as a webcast. For further queries, please contact: Investor Relations: Tolle O. R. Grøterud Phone: +47 90 27 29 59 E-mail: ir@xxlasa.com Press contact:Andreas Nyheim Email: presse@xxl.no Phone: + 47 952 11 779 This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act About XXL ASA XXL is a leading sports retailer with stores and e-commerce inNorway ,Sweden ,Finland ,Denmark andAustria . 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.
Click here for more information
© Oslo Bors ASA, source