XXL lost 209 million before tax in the first quarter – E24

The stressed sports equipment chain reports weak sales development, but that costs are more under control.

The sports equipment group XXL has on Wednesday presented figures for the period January, February and March this year.

The figures show this, among other things:

• Profit before tax was minus NOK 209 million in the first quarter of the year, compared to minus NOK 284 million at the same time last year
• Operating profit (ebitda) was NOK 12 million, against minus NOK 45 million
• Total operating income was NOK 1.56 billion, against NOK 1.98 billion

The company refers to the sales development as weak.

XXL states that the Nordic market continued to be challenging. This is the ninth quarter in a row with falling turnover figures.

The fall in comparable sales year-on-year was affected by an extraordinary campaign in the first quarter of 2023.

The winter conditions have been favorable and the company writes that there has been growth in important winter categories such as alpine and cross-country skiing.

“Sales of non-seasonal goods and other capital-intensive products continue to be challenging,” writes XXL.

The boss earned 7.1 million in seven months

XXL manager Freddy Sobin says that low availability has held back sales, but that the restructuring plan is still going as planned.

– Inventory, gross margin and costs are increasingly under control, and we secured a successful private placement in March, says Sobin in a statement.

The annual report was also presented on Wednesday morning. It shows that Sobin earned NOK 7.1 million in seven months. He took over in May last year.

Even before today’s quarterly report, XXL had announced what the income would be. The income announcement came in connection with the company announcing that it is collecting half a billion kroner from shareholders. The fundraising is one of several XXL has done in recent years.

Large losses have characterized the company over time and created financial pressure. For the whole of last year, XXL lost NOK 1.6 billion before tax, compared to NOK 531 million the year before.