Q2 2024 XXL ASA Earnings Call Transcript
Key Points
- XXL ASA (LTS:0R3P) reported a significant increase in EBITDA by NOK96 million, indicating improved underlying profitability.
- The company's gross margin improved by almost 5 percentage points year-over-year, showcasing effective pricing strategies.
- Inventory levels were reduced by 15% year-over-year, reflecting efficient inventory management.
- The company successfully raised almost NOK0.5 billion through a private placement and subsequent offering, strengthening its liquidity position.
- XXL ASA's customer club membership grew to over 3.8 million members, enhancing customer engagement and loyalty.
- Sales decreased by 9% in the quarter, which negatively impacted further profitability improvements.
- The availability of top products was only at 82%, which hindered potential sales growth.
- Capital-intensive goods, particularly bikes, experienced a significant decline in sales, contributing to a NOK96 million loss year-over-year.
- The Finnish market remains challenging, affecting overall market performance.
- Despite cost-saving measures, OpEx showed only a modest reduction due to non-recurring items and timing effects.
Good morning, ladies and gentlemen, and welcome to the second-quarter results presentation. My name is Tolle Grøterud, and I have the pleasure of guiding you through today's presentation. Our CEO, Freddy Sobin; and our CFO, Stein Eriksen, will take you through the presentation then followed by a Q&A session. And for media, there will be an opportunity to perform separate interviews after the presentation, so please direct your request to the press contact. So without further introductions, I turn the floor over to you, Freddy.
Thank you very much, Tolle. Good morning, ladies and gentlemen. I hope you're having a great summer so far. We're here today to present the second-quarter developments and results in XXL. And I'm happy to report that our plan Reset & Rethink is progressing well.
We are just like the headline says, actually delivering a strengthened underlying profitability measured as
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