XXL is concluding its first quarter with negative sales development, but with
strengthened gross margin, strong cost control and full focus on delivering the
"Reset & Rethink" plan. The first phase of the "Reset & Rethink" plan, centered
around five must win battles, is expected to deliver an EBITDA run-rate uplift
of NOK 500-750 million during the next 12-15 months. The plan is progressing
well, and most initiatives are beginning to yield positive effects, including
the cost out ambition, and the effects will be seen even more so during rest of
2024 and fully in 2025. 

XXL delivered negative year over year growth of 22 percent in the first quarter
2024, and total operating revenue amounted to NOK 1.6 billion (NOK 2.0 billion).
The sports and outdoor retail market in the Nordics continued to be challenging,
making it the ninth consecutive quarter with negative growth. The decline in
comparable year over year sales volume for XXL was also impacted by the
extraordinary clearance campaign in Q1 last year. The winter conditions have
been favorable though and XXL had growth in important winter categories like
alpine and cross country. Sales of non-seasonal products and other
capital-intensive products continued to be challenging. Limited product
availability on important price points and products in high demand with high
turnover continued to hold back sales potential as well.  

EBITDA amounted to NOK 12 million (negative NOK 45 million) driven by
strengthened gross margin and lower operating expenses. XXL also launched a
successful and oversubscribed private placement of NOK 500 million to secure the
liquidity situation going forward.

Highlights: 
- Weak revenue development, but positive gross margin trend and strong cost
control
-	Total operating revenue of NOK 1 558 million (1 984 million)
-	Gross margin of 38.8 per cent (31.4 per cent)
-	EBITDA NOK 12 million (negative NOK 45 million) 
- But with a strengthened balance sheet moving forward in 2024
-	Reduced inventory by NOK 288 million 
-	Successful and oversubscribed private placement of NOK 500 million to
strengthen liquidity
-And the "Reset & Rethink" strategy continuing to progress well

CEO Freddy Sobin says:
"Low availability has been holding back sales, while our Reset & Rethink
strategy continues to progress according to plan. Inventory, gross margin and
cost are increasingly under control, and we secured a successful private
placement in March. Concrete measures are being taken to return XXL back to
shape by 2024/25, which includes an increased focus towards lower price points,
which will also improve availability gradually during Q2 and onwards".

Outlook
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 12-15 months.
 
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 regain growth in the
E-commerce channel.

In line with the existing strategy, XXL will continue to mainly invest in
operational efficiency, store footprint optimization, customer experience
enhancing projects in both stores and in the E-commerce platform, as well as in
IT and tech. Total CAPEX for XXL Group in 2024 is expected to remain modest at
around NOK 100-150 million. 

XXL has thus far no new store openings signed in 2024. 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.


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 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:
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 24 April 2024 at 07:00 CEST.

About XXL ASA 
XXL is a leading sports retailer with stores and e-commerce in Norway, Sweden
and Finland. 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.