XXL is currently working on several short-term actions and a longer-term
strategic plan, called "Reset & Rethink". Five must win battles are expected to
deliver an EBITDA run-rate uplift of NOK 500-750 million during the next 12-24
months. This is progressing according to plan and most initiatives are expected
to begin to yield positive financial contribution going into 2024 and beyond. In
the quarter XXL successfully launched an upgraded version of its loyalty
program, XXL Reward, allowing customers to earn bonus points on every purchase
from XXL and consequently receive bonus checks. The strategy to increase the
sales share of private label is already initially showing promising results,
primarily driven by the partnership with Stormberg, which is off to a solid
start with good sales numbers, incremental gross margin uplift and high stock
turn over. In addition, exit agreements for the remaining three stores in
Austria were signed in the quarter. Consequently, XXL will have no material
operations or commitments in Austria after year end 2023.

XXL delivered a negative growth of 10 per cent in the third quarter 2023,
compared to the same quarter last year, and total operating revenue equaled NOK
2.0 billion (NOK 2.2 billion). The sports and outdoor retail market continued to
be challenging and was impacted by reduced demand, heavy discount activities and
high inventory levels up streams in the value chain. Under such conditions XXL
has prioritized liquidity and inventory control, leading to continued high
campaign activities and lower gross margin. Consequently, EBITDA ended at NOK 35
million (NOK 187 million). The inventory is now back to normalized levels,
providing potential for a higher gross margin over time. In the quarter XXL
received the settlement of its oversubscribed rights issue of gross NOK 500
million, to strengthen its liquidity position accordingly. Total liquidity
reserve in the quarter ended at NOK 782 million (NOK 817 million) and the net
interest-bearing debt amounted to NOK 862 million (NOK 983 million).

Highlights: 
-	Unsatisfactory third quarter results - lower demand and challenging markets
-	Total operating revenue of NOK 1 982 million (2 207 million)
-	High share of campaign activities in the market 
-	EBITDA of NOK 35 million (NOK 187 million)
-	Reset & Rethink plan progressing 

CEO Freddy Sobin says:
o	"We are not satisfied with the third quarter results. The market remains
challenging, primarily driven by reduced demand, high levels of discounting and
excessive inventory in the value chain.
o	To strengthen XXL both financially, commercially and operationally, we have
initiated a series of short-term must win battles and a long-term strategy
called "Reset & Rethink". These are already starting to materialize, among other
things through a relaunched customer club and the partnership with Stormberg.
o	To enhance profitability, we have implemented five must win battles - category
reset, availability, store operations, pricing and e-com profitability. These
are expected to deliver a run-rate EBITDA uplift of NOK 500-750 million over the
next 12-24 months".

Outlook
As seen in previous quarters XXL expects the market to remain challenging and
uncertain going into 2024 and with general high campaign pressure. 

XXL is in the phase of implementing several strategic initiatives and projects
to improve profitability and operational efficiency moving forward, called
"Reset & Rethink". Five must win battles are expected to deliver an EBITDA
uplift of NOK 500-750 million during the next 12-24 months. The longer-term
strategic plan and targets are in process to be further detailed and planned.

XXL's target and goal moving forward is to come back to sound profitability as
well as over time gain market shares in all markets and continue the growth in
the E-commerce channel.

In line with the existing strategy, XXL will continue to invest in operational
efficiency, store optimizing projects, E-commerce platform, infrastructure and
IT. Total CAPEX for XXL Group in 2023 is expected to be around NOK 100-150
million. 

Mid- to long-term XXL continues to expect the pace of the store roll-out to be
2-3 new stores per year including relocations of stores. At the same time XXL
will be downsizing several existing stores. Short term the Group will continue
to focus on optimizing the store portfolio, including evaluation of selective
closures of low performing stores with limited turnaround abilities. 

XXL will exit Austria in 2023 and consequently have no material operational or
contractual obligations after year end 2023.


For further information please find attached the quarterly report and
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 Freddy Sobin and CFO Stein
Eriksen. The presentation will be held in English and will be webcasted at
www.xxlasa.com. 


For further queries, please contact: 
Investor Relations: 
Tolle O. R. Grøterud
Phone: +47 902 72 959 
E-mail: ir@xxlasa.com
 
Press contact: 
Jan Christian Thommesen
Phone: + 47 918 21 387 
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. This stock exchange
announcement was published by Tolle O. R. Grøterud, Investor Relations Officer
at XXL ASA, on 27 October 2023 at 07:00 CEST.

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.