I’ve been keeping an eye on this and today was the Q3 review, mostly just pinging about that. Even the already low expectations were too much for XXL.
Revenue dropped by about 10% from last year and losses continued. Assets after the quarter were 782 (million NOK), net interest-bearing debt was 862 (million NOK) and the loss was 140 (million NOK).
According to the CEO, the inventory situation is finally within normal limits, which should improve margins going forward. Incidentally, the number of shares sadly nearly tripled in a year.
Q4 sounded like they expect more of the same. No rush to get in yet, but the development in 2024 needs to be watched. If there’s no sign of a turnaround next year, they might have to print more shares in the future too (my own speculation).
Otherwise:
XXL saw a rapid rise of over +80% in mid-October. At that time, Frasers Group (a British retail, sports, and intellectual property owner) bought about 118 million more shares. After that, Frasers Group owned 9.75% of all XXL shares and 12.16% of the votes. This news raised expectations for the Q3 result.
However, that hype died down in a couple of weeks, as is typical in the current market, and now it turned out that at least in Q3, no turnaround had happened yet. And the CEO didn’t promise a turnaround for Q4 either, mostly speaking about cost savings for next year.
