OSLO – Norwegian sports activities retailer XXL warned on Wednesday of weaker earnings margins and stated it would elevate 500 million Norwegian crowns ($50.6 million) in new fairness, and plans to tug out of the Austrian market.
“XXL‘s markets have continued to be difficult within the fourth quarter 2022 pushed by low shopper confidence and decreased demand for sporting items usually,” the corporate stated in an announcement.
“The market is characterised by excessive stock ranges in the entire worth chain, leading to aggressive pricing and extreme marketing campaign actions,” it added.
Working income for the fourth quarter is predicted to be within the vary of two.3 billion-2.4 billion crowns, “with considerably decrease gross margins because of the corporate specializing in liquidity”, XXL stated.
The corporate estimated its earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) to quantity to between 50 million and 100 million crowns for the October-December interval, down from 403 million a yr in the past.
($1 = 9.8840 Norwegian crowns)
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