XXL (XXL) Q4 2024 earnings summary

Executive summary

• Q4 2024 marked a return to positive sales momentum, with December and January showing growth across all markets despite challenging Nordic conditions and a late winter start.

• The "Reset & Rethink" strategy delivered improvements in assortment, pricing, store operations, cost control, and e-commerce profitability.

• Key growth drivers included strong Black Week and Christmas sales, private label expansion, e-commerce growth, and a rapidly expanding loyalty program.

• Sweden led the sales recovery, gaining market share, while Finland remained challenging.

• Extraordinary goodwill and deferred tax asset impairments totaling up to NOK 740 million were recognized, with no cash effect.

Financial highlights

• Q4 2024 operating revenue was just over NOK 2 billion, down 1.8% year-over-year; full-year revenue was NOK 7.2 billion, down 13.1%.

• Q4 2024 EBITDA improved to NOK 18 million (0.9% margin), up from negative NOK 13 million; full-year EBITDA reached NOK 74 million.

• Gross margin for Q4 2024 increased to 35.7% (from 33.5%); full-year gross margin was 35.9% (up from 31.5%).

• Net OPEX reduced by NOK 235 million year-over-year, with gross savings of NOK 298 million since 2022.

• Liquidity at Q4 2024 was NOK 341 million, down over NOK 400 million year-over-year.

Outlook and guidance

• 2025 will focus on growth, with continued positive sales and gross margin trends, store modernization, and loyalty program expansion.

• CAPEX for 2025 is expected to be around NOK 100 million, with one new store opening signed and a plan for 2-3 new stores per year.

• Emphasis remains on lean operations, disciplined capital and inventory management, and further cost reductions.

• Short-term focus on inventory and liquidity may impact product availability and margins.