XXL : and UK retail industry leader Frasers Group intend to establish strategic partnership

- The proposed partnership will leverage mutually beneficial synergies between XXL ASA and Frasers Group across product sourcing, servicing, and sourcing financing.

- Collaboration between the retailers to build on and accelerate XXL's implementation of the Reset & Rethink strategy, launched in Summer 2023.

- XXL to benefit from Frasers Group's successful experience on store elevation and relationships, access to the Group's controlled brands and brand sourcing.
Oslo - June 4, 2024, XXL ASA (XXL), and Frasers Group plc (Frasers Group), are close to agreeing a mutually beneficial strategic partnership with the aim of strengthening XXL's position in the Nordics.

Frasers Group, which owns a large portfolio of retail brands including Sports Direct and more than 30 % of XXL's Class A shares, believes XXL to be uniquely positioned to strengthen Nordic market leadership by leveraging existing store footprint, centralized operating model and omnichannel capabilities.

A partnership between XXL and Frasers Group would involve mutually beneficial synergies to strengthen retail operations and performance. The two companies would share learnings and best practices with each other, and in particular Frasers Group would share best practice from their Elevation Strategy, including expertise on brand sourcing relationships. XXL would also benefit from access to the Group's controlled brands and support on accelerating its Reset & Rethink strategy.

Group CEO XXL Freddy Sobin, said: "A more strategic partnership where we explore and leverage possible synergies would be mutually beneficial in many areas such as sourcing, brand partnerships, store elevation, best practice knowledge sharing and more. Frasers Group is passionate about strategic brand partnerships and in our new journey, so are we, because XXL has always been all about great brands, great products, and great prices."

Michael Murray, CEO of Frasers Group commented: "Partnering with XXL would be a significant step forward in our ambition to becoming a global sports retailer. The expertise we have gained through our Elevation Strategy, particularly in brand relationships, retail elevation, and the utilization of our own brands, will be invaluable to XXL as it regains its position as a champion within sporting goods in the Nordics. In turn, Frasers would benefit from their existing footprint that will drive new avenues of growth for the Group in the sporting goods market."

XXL's Reset & Rethink strategy

XXL is beginning to reap the benefits of its Reset & Rethink strategy, launched in 2023, which aimed to improve retail operations and performance at XXL. A strategic partnership with Frasers Group would further accelerate implementation of the strategy.

Freddy Sobin said: "Reset is what we initially have been focusing on, and it entails top line quick-wins, cost control and structural measures through five must win battles. Rethink on the other hand entails accelerating key top-line levers through four long-term strategic pillars: Restructuring physical stores, accelerating e-commerce, doubling down on own and controlled brands as well as leveraging our service offering. As communicated, we are seeing indicators that the plan is materializing and that we are progressing in the right direction."

For further information, please contact:
Investor Relations
Tolle O. R. Grøterud
Tel: [phone]
E-mail: [e-mail]

Press contact
Jan Christian Thommesen
Tel: + 47 918 21 387
E-mail: [e-mail]

ABOUT XXL ASA
XXL is a leading sports retailer with stores and e-commerce in Norway, Sweden and Finland. It is the largest among the major sports retailers in the Nordics. 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 best prices and the widest assortment of products, focusing on branded goods.