XXL

Earnings Release • Apr 27, 2016

XXL ASA - First quarter 2016 results - Broad based growth where Sweden is standing out

XXL ASA - First quarter 2016 results - Broad based growth where Sweden is standing out

In the first quarter 2016 XXL ASA delivered a growth

rate of 23 per cent compared to the same quarter last

year. Under various winter conditions XXL succeeded to

grow sales but at lower gross margin. However, focus

on clearance of seasonal products resulted in a good

and healthy inventory situation. EBITDA amounted to

NOK 101 million with a corresponding margin of 6 per

cent, impacted by the increase in digital marketing

costs and the higher costs after doubling the capacity

at the central warehouse in Sweden. Overall the

Swedish results are standing out with a revenue growth

of 25 per cent and a positive like-for-like growth of

12 per cent in local currency.

Highlights Q1 2016

- Total revenues of NOK 1 684 million (NOK 1

369 million), up 23 per cent

- Like-for-like growth of 11 per cent

- EBITDA of NOK 101 million (NOK 95 million)

- Sweden standing out with strong results

Outlook

XXL has signed 10 new lease agreements for store

openings for 2016 where of 6 in Norway. The target for

2016 is 10-12 new stores in total.

In addition XXL will launch an e-commerce offering in

Denmark in 2016. The launch will be colored by

aggressive pricing and high marketing spending and

will return negative profits the first years of

operation. The business case has minor initial CAPEX

but the total investment should be considered as a

small store outside Norway with 4-5 years of pay-back.

Due to more stores and growth in e-commerce in Norway

XXL will invest in the central warehouse. The central

warehouse in Norway will increase from approximately

24 000 square meters to 32 000 square meters. In

addition, XXL will increase the capacity of the

Autostore system in Sweden. Total infrastructure

investments will be in the range of NOK 50-65 million

in 2016.

The distribution channels for XXL marketing material

is under substantial change where the existing print

and TV marketing is under pressure. XXL will focus

more on digital marketing channels in addition to the

existing channels. The new strategy will increase the

marketing cost in per cent of sales in all countries

in a transition period by approximately 0.5 percentage

points year over year.

The Group maintains the following long term objectives

(as compared to 2013 figures):

- Like-for-like growth of mid-single digits over

time including e-commerce

- E-commerce share of total revenues of low

double digits

- Gross margins to be stable. For Norway

maintained at the same level, increasing to high 30's

in Sweden and Finland. Due to the demanding macro in

Finland the lift to high 30's may take longer time

than in Sweden

- EBITDA-margin stable as a result of stable

gross margins and operating expenses. In Norway at low

20's, in Sweden low double digits and in Finland high

single digits.

For further information please find attached the

quarterly report and the presentation material.

The results will be presented at 08:30 CET by CEO

Fredrik Steenbuch and CFO Krister Pedersen. The

presentation will take place at our headquarters in

Oslo, Strømsveien 245, Alna Senter (entrance on the

right side of Maxbo). The presentation will be held in

English and will be webcasted at www.xxlasa.com. You

may also follow the presentation live by telephone.

Dial-in details: +47 21 56 33 18 (Norway) and +44(0)

20 3003 2666 (International), passcode - XXL Q1.

A replay will be available on www.xxlasa.com soon

after the live presentation.

For further queries, please contact:

Tolle O. R. Grøterud, Head of Investor Relations, XXL

ASA

Tel: +47 90 27 29 59

E-mail: ir@xxlasa.com

This information is subject of the disclosure

requirements pursuant to section 5-12 of the Norwegian

Securities Trading Act

About XXL ASA

XXL is a leading sports retailer with stores and e-

commerce in Norway, Sweden and Finland. It is the

largest and the fastest growing among the major sports

retailers in the Nordic. XXL pursues a broad customer

appeal, offering a one stop shop experience with a

wide range of products for sports, hunting, skiing,

biking and other outdoor activities. XXL's concept is

to have the largest stores with the lowest prices and

the widest assortment of products, focusing on branded

goods.