The huge demand for sports equipment has made XXL a stock market winner in recent months.
The result for the third quarter shows an operating profit (ebitda) of NOK 413 million. In the same period last year, XXL received an ebitda of NOK 271 million. This was expected to be NOK 360 million in advance, according to estimates TDN Direkt has obtained from seven analysts.
Growth was also strong in the quarter. Operating revenues ended at NOK 2.82 billion, an increase of 14 per cent from NOK 2.47 billion in the same period last year. XXL writes that sales gradually slowed down during the quarter, partly due to a shortage of goods after several months of high growth and demand.
Profit before tax ended at DKK 188 million in the quarter. This is more than a quadrupling from the third quarter last year when profit before tax was NOK 42 million.
650 percent increase
Among the companies with a market capitalization of more than NOK 5 billion, XXL has been a clear stock market winner for the past six months.
At the low point at the end of March, the share was traded at NOK 3.42. Then the financing package fell into place and Pål Wibe came in as the new XXL boss.
Since then, it has only gone up. The sports industry is among the industries that got wind in their sails during the corona period, and on Monday the share was traded for just under 26 kroner. This corresponds to an increase of 650 percent over the course of seven months.
– This has nothing to do with me. Retail is teamwork, Wibe said when he presented a growth of 35 percent in the Norwegian market earlier this summer.
The refinancing earlier this year has made the financial situation significantly more solid. XXL writes that it has continued to reduce inventory and that the total liquidity reserves are now NOK 1.24 billion, compared with NOK 575 million in the same period last year. At the same time, net interest-bearing debt has been cut from NOK 1.87 billion last year to just under NOK 45 million now.
Wibe has earned 50 million.
Among those who have earned the most from the stock market rise are the leaders and the board of XXL. DN recently wrote about a stock investment program that has provided an adventurous return for those who got to take part in it. With the help of a loan of 40 million from XXL, they were able to maximize their investment and get a return of around 800 percent in five months.
Wibe’s investment of just over six million has a present value of around 55 million.
– It is more fun to work when you get such programs in place. You roll up your sleeves, and when you succeed, everyone participates in the prize giving. I hope they make a lot of money, said chairman of the board Hugo Maurstad to DN.
Investing more in Austria
So far this year, XXL has signed four leases for new stores in 2020. One of these is in Norway, one is in Sweden and two are in Austria. Three of these have already opened, while the last one is scheduled to open in Austria in the fourth quarter.
Companies expect to open 3-5 new stores a year and concentrate on new stores in Austria, and some in Sweden. At the same time, more existing stores will be scaled down.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other form of use of all or part of the content, can only take place with written permission or as permitted by law. For further terms see here.