The company’s turnaround plan shows progress in the first period of 2025.
XXL Asa said it continued to make progress under its “reset and rethink” turnaround strategy during the first quarter as revenues rose 7.2 percent to 1,700 million Norwegian kroner (€144m) with growth in all markets and sales channels despite “challenging” conditions, especially in Finland.
The company, currently facing a mandatory offer from its majority shareholder Frasers Group for the remaining shares in the firm, said sales resilience had improved, as a stronger marketing campaign and activation of non-seasonal categories offset lower seasonal winter product sales amid muted conditions. General product availability improved in the quarter, driven by increased quantities at lower price points, especially within Private Label.
| XXL - Income | |||
|---|---|---|---|
| Q1 (NOK million) | |||
| 2025 | 2024 | Change | |
| Total operating revenue | 1,670 | 1,558 | 7.2% |
| Cost of goods sold | 1,033 | 953 | 8.4% |
| Personnel expenses | 417 | 382 | 9.2% |
| Other operating expenses | 207 | 211 | -1.9% |
| Depreciation | 192 | 200 | -4.0% |
| Impairment losses | – | – | – |
| Total operating expenses | 1,849 | 1,745 | 6.0% |
| Operating income | -179 | -188 | 4.8% |
| Net financial expense | -102 | -21 | -385.7% |
| Pre-tax | -281 | -209 | 34.4% |
| Tax | 30 | – | – |
| Net income | -311 | -209 | -48.8% |
| Diluted EPS | -9.83 | -12.57 | 21.8% |
| Source: XXL | |||
Ebitda was flat at NOK 12 million (€1.01m), as growth in total operating revenue was offset by increased operating expenses. Ebit losses narrowed slightly to NOK 179 million (€15.15m) from NOK 188 million a year earlier. The gross margin slipped slightly to 38.2 percent from 38.8 percent.
Region by region
By region, Norway revenue increased 5.5 percent to NOK 846 million (€71.6m) with growth in low price points as well as non-seasonal categories like running, training and bikes, partly counteracting lower sales within winter ranges. Gross margin declined to 38.9 percent from 39.7 percent.
Sales in Sweden rose 9.3 percent to NOK 538 million (€45.5m). XXL said the market continued to improve but was still hampered by lower demand and sales of winter-related products. Ebita margin gained to 6.9 percent from 5.3 percent.
Finland revenue was up by 1.8 percent to NOK 285 million (€25.1m) although the market was still challenged by weak consumer sentiment and low demand. Ebita margin surged to 6.6 percent from 2.3 percent, mainly due to more aggressive campaigning and higher provision for bonus points in XXL’s loyalty program. Ebita was NOK 19 million (€1.6m), up from 2024’s NOK 6 million.
| XXL - Sales | ||||
|---|---|---|---|---|
| Q1 (NOK million) | ||||
| 2025 | 2024 | Change | ||
| Norway | ||||
| Operating revenue | 846 | 802 | 5.5% | |
| Gross profit | 329 | 319 | 3.1% | |
| Ebitda | 104 | 106 | -1.9% | |
| Ebitda margin | 12.3% | 13.2% | -0.9pp | |
| Sweden | ||||
| Operating revenue | 538 | 481 | 11.9% | |
| Gross profit | 200 | 184 | 8.7% | |
| Ebitda | 37 | 25 | 48.0% | |
| Ebitda margin | 6.9% | 5.3% | 1.6pp | |
| Finland | ||||
| Operating revenue | 285 | 275 | 3.6% | |
| Gross profit | 108 | 102 | 5.9% | |
| Ebitda | 19 | 6 | 216.7% | |
| Ebitda margin | 6.6% | 2.3% | 4.3pp | |
| Source: XXL | ||||
Turnaround plan still in progress
XXL is currently working on several short-term turnaround actions and a longer-term strategic plan, called to improve sales and profitability and has set five “must win” targets: reset category strategies; secure product availability; improve store sales strategies and operations; strengthen pricing processes and increase e-commerce profitability.
It expects these to deliver an Ebitda run-rate uplift of NOK 500-750 million (€42.34m-63.5m), conditional on sufficient product availability in key seasonal categories and positive market development for sporting and outdoor goods in the Nordics. XXL has also launched further ambitions to cut costs and free up capital with a target of gross NOK 300 million (€25.4m) by 2026.
In relation to the Frasers offer, XXL said it had engaged ABG Sundal Collier ASA and Advokatfirmaet Thommessen AS to review and consider the matter, adding that it would make a statement no later than May 6.
