Norwegian-based XXL ASA, Scandinavia´s largest sport & outdoor retailer with nearly 100 stores and international web stores, cites weakening consumer sentiment and lower current demand for sporting goods in pre-announcing expected results for its second quarter. Ebitda is forecast to decline by nearly 48 percent to a range of NOK 190 to 220 million (€18.2m-€21.0m) from NOK 392 million in the year-ago period. Total operating revenues are predicted to fall by more than 8 percent in local currency to NOK 2.2 billion (€210.3m) from NOK 2.4 billion, with gross margin falling to a range of 38 to 39 percent from 41.8 percent. The outlook for the Scandinavian retailer with an additional presence in Austria could change given the final weeks of June are an important sales period. The company intends to adjust its order volumes to sales and enact several short-term measures to curb costs.
Interviews by SIG Europe with several unlisted larger retailers in Scandinavia confirm that XXL’s situation in spring 22 also describes their situation well, because as a result of saturated markets after the pandemic, the downward trend is particularly noticeable among online pure players.
XXL ASA will formally report second-quarter results on July 15.
