XXL : Q1 2021 - Solid result improvement despite store closures

Oslo, 23 April 2021: Despite the many temporarily store closures XXL delivered stable revenues, sustainable strong gross margins and a solid EBITDA in the first quarter. XXL has capitalized on its E-commerce platform which made up 26 per cent of sales in the period. Also under lockdown periods XXL has accelerated the implementation of several strategic projects which will strengthen the Group further going forward.

Highlights from the quarter:

• Operating revenue of NOK 2 166 million (NOK 2 162 million)
• Sustainable gross margin of 40.4 per cent (30.1 per cent)
• EBITDA of NOK 207 million (minus NOK 36 million)
• Liquidity reserves of NOK 1 181 million (NOK 774 million)

CEO Pål Wibe says:

• This summer will be the most long-awaited for many years - also for XXL. With temporarily store closures in Norway and Austria, we have put in a tremendous effort to be present for our customers. In Norway online sales have counted for more than half of the sales in some weeks.
• We are satisfied with our progress both financially and operationally. One year ago we arranged the biggest clearance sales in XXL's history that also distorts the comparable figures. Since then we have done a lot of improvements, and we have secured financial stability and more sustainable margins. We have used the last months to rebuild 61 of our 90 stores and speed up other strategic projects. This will make XXL an even more inspiring destination to visit in the future, both online and in the physical stores.
• Many enthusiasts are planning for a staycation summer with a lot of sports and outdoor activities on the menu. We are ready and have increased our purchasing volumes. We have stacked up everything from kayaks and camping tents to home gym products in greater volumes than last year.

Outlook

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 for XXL Group in 2021 is expected to be around NOK 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 in Sweden and 1 in Austria. At the same time XXL will be downsizing several existing stores.

Given the financial strength, XXL will initiate a refinancing of the Group, aiming for continued flexibility, improved terms, as well as returning to the long term dividend policy with a targeted pay out ratio of 40-50 per cent of the Groups annual normalized net income

Program to repurchase own shares

In accordance with the authorization to acquire own shares given at the Annual General Meeting on 4 June 2020, the Board of Directors of XXL ASA initiates a program to buy-back own shares. With reference to the resolution made by the Annual General Meeting on 4 June 2020 the share buy-back program is to optimize capital structure by cover for shares to the long term management investment program. The total number of shares to be acquired is 3,500,000 shares, currently of a value of around NOK 70 million. The highest price to be paid per share will be NOK 30, but shall in no event exceed the prevailing market price at the Oslo Stock Exchange on the relevant trading day. The shares will be purchased from the open market. The share buy-back program will commence on 26 April 2021 and will continue until 1 June 2021. In agreement with the bank consortium the RCF 'corona' facility of NOK 200 million will be cancelled.

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 at 08:30 CET by CEO Pål Wibe and CFO Stein 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: [phone]

E-mail:[e-mail]

Press contact:

Andreas Nyheim

Phone: + 47 952 11 779

Email:[e-mail]

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 in Norway, Sweden, Finland, Denmark and Austria. 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.