XXL ASA Oslo ,15 July 2021 : Several temporarily store closures and delayed delivery of incoming goods hampered sales in the quarter and total operating revenue ended atNOK 2.4 billion (NOK 2.9 billion ). XXL is not satisfied with the sales and market share development and will sharpen campaign activities going forward. However lost sales in the quarter were compensated through improved gross margins and good cost control, delivering a solid EBITDA ofNOK 392 million (NOK 404 million ). Highlights from the quarter: - Operating revenue ofNOK 2 420 million (NOK 2 865 million) - deviation from last year mainly explained by store closures and product availability - Strong gross margin of 41.8 per cent (37.0 per cent) - EBITDA ofNOK 392 million (NOK 404 million ) - Refinancing of the Group and returning to dividend distribution CEOPål Wibe says: - It has been an extraordinary quarter. We started the quarter with 20 of 37 stores closed inNorway . We have also suffered from severe challenges in the bike market, with delays both in bike production and the freight market. These disruptions have been due to the pandemic. - We are not satisfied with the recent sales and market share development, but we still deliver solid results close to record-levels. We have also completed several strategic projects to position XXL as a destination for the sports and outdoor enthusiasts. We are well prepared for the future. - We see that many customers will stay at home also this summer, with watersports and outdoor being two of the most popular summer categories, and watersports and racket sports growing the most. In the quarter XXL has implemented several projects including roll-out of RFID, electronic price labels, modernized brand platform and new store layouts towards the customers. XXL works on other 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. XXL has refinanced the Group, providing total bank loan facilities ofNOK 1.8 billion at improved terms, giving increased flexibility and the ability to return to dividend distribution. The Board of Directors propose an extraordinary dividend ofNOK 500 million to be paid out during H2 2021. Outlook XXL's target and goal going forward is to over time gain market shares in all markets, and continue the growth in the E-commerce channel. XXL targets to stabilize the gross margin above 39 per cent. In line with the existing strategy, XXL will continue to invest in operational efficiency, selective new store openings, 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. 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 at08:00 CET by CEOPål Wibe and CFOStein Eriksen . The presentation will be held in English and will be webcasted at www.xxlasa.com. 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 Phone: + 47 952 11 779 Email: presse@xxl.no This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. AboutXXL 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.
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