The sports chain XXL announces a fall in revenues of half a billion in 2019 from the previous year, following disappointing sales in the fourth quarter.
Both December, and especially during the Christmas season, have been weak for XXL, reports E24, citing a stock exchange announcement from the company that was released just before 7pm Thursday night.
– Poor winter conditions in the big cities, as well as large price cuts from the main competitors, have contributed to a negative growth of 12 percent in the quarter, the company writes.
Revenues in 2019 are estimated at NOK 9 billion, compared with NOK 9.5 billion the year before, the company writes in the stock exchange announcement.
XXL presents the final annual result for 2019 on February 7.
Snowy winters have been a sure success factor for sports chains. When it comes to a winter without any snow in the lowlands, there will be problems. After several years of growth, the industry is also squeezed by high establishment, low margins and several new players, writes Dagens Næringsliv.
– “It’s tough out there. Although a lot is sold, the margin pressure is heavy. Everyone has to make money,” says Trond Evald Hansen, director of the Norwegian Sports Industry Association to DN.
© NTB Scanpix / #Norway Today