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The crown crisis has given the country’s largest sports network another super strong quarter, and it is the Norwegian market that bears the burden.
XXL top Pål Wibe has reason to be satisfied with the results of the last two quarters.
Tore Meek
Published:,
There is no doubt that the Norwegians were hungry for sports equipment even after the joint holidays and throughout the fall.
XXL generated revenue of NOK 2.82 billion, up from NOK 2.47 billion in the same period last year.
After-tax earnings ended at NOK 159 million, a solid increase from NOK 33 million in the third quarter of 2019.
The Norwegian market continues to pull freight, with comparable growth of 16 percent, compared to a decline in Finland and Austria.
Operating profit (ebitda) ended at NOK 413 million, up from NOK 217 million last year.
Overall, the company claims it is the best third quarter in XXL history.
Missing goods
The company writes that results gradually deteriorated during the quarter after periods of record growth, and part of this is related to a lack of flow of goods from suppliers.
This also affected online sales, which represented a lower turnover in the third quarter of the year compared to last year.
Nevertheless, Finland was a demanding market for XXL this fall, with much less demand than Norway, for example. At the same time, XXL offers below average growth for the rest of the market, with comparable negative growth of 8.7%.
The Swedish market is burdened by outlet stores on the border, which have seen a 70 percent decline in turnover as a result of border closures and the crown crisis.
It was not like a happy atmosphere when the funny XXL top, Tolle Grøterud, presented figures before the crown crisis. The last two quarters, on the other hand, have been much better.
Ole Berg-Rusten / NTB Scanpix
Lost analyst estimates
In advance, analysts expected the company to generate revenue of NOK 2.96 billion, according to Bloomberg, which has compiled figures from nine brokerages.
Thus, the consensus corresponds to a growth of 20 percent, slightly above what the company actually delivered.
In the background, analysts envisioned an after-tax profit of NOK 112.8 million and almost 80 million was lost from the actual result.
From the crisis quarter to the sales party
The crown crisis has given XXL and the sports industry in general a much-needed boost.
Closed borders and restrictions on movement in the public sector have made holidays, forests and fields in Norway lucrative for those who sell equipment and clothing for outdoor activities.
But the results presented on Tuesday should come as no surprise, as second-quarter figures also showed a 31% growth in gross revenue, with the Norwegian market being the strongest.
Exactly a year ago, it looked completely different. The XXL stock was hit hard after the announcement of a 500 million share issue and weaker results than expected.
This year, however, XXL is one of the stock market’s big winners and is up 83.79 percent so far this year, versus the leading index, which was down 9.61 in the same period.
The quarterly report indicates that XXL has signed a total of four new store leases this year. Two of the stores are located in Austria, one in Sweden and one in Norway, and only one of the stores in Austria has yet to open.
The goal for the future is to open between three and five stores a year. At the same time, the company has long stated that it wants to make more of the department stores smaller than they are today.
