Signa Sports United (SSU), the world’s leading sports e-tailer whose shares began trading on the New York Stock Exchange on Dec. 15, reported a 10 percent increase in total sales to €247 million for the fourth quarter of its fiscal year ending Sept. 30, 2021, despite supply shortages for bicycles. Excluding sales of complete bicycles, revenue increased 19 percent.
The disruption to the supply of bicycles, particularly e-bikes, will continue in the first half of the current fiscal year. As many stores were closed during this period, the situation will likely lead to an organic decline in sales in the first half ending March 31. The German-based group expects organic growth to resume in the third quarter after supply chain constraints are mitigated.
SSU reported an 85 percent decline in fourth-quarter adjusted Ebitda to €1 million, with adjusted Ebitda margin falling to 0.4 percent from 2.7 percent a year earlier. Gross margin increased to 38.0 percent from 36.2 percent in the fourth quarter of the previous fiscal year, but the group’s quarterly net loss widened to 21 million euros from 10 million euros due to special charges related to the IPO.
For the full year, sales rose 24 percent to €872 million, or 31 percent if sales of fully assembled bikes are excluded. Sales were up 21 percent in team sports, 23 percent in the cycling and outdoor segment and 31 percent in tennis. The company had previously forecast sales of €1 billion for the fiscal year.
German-speaking countries continued to dominate the regional mix, although the company did not disclose its share of total sales. In addition to further strengthening its market position in core regions such as the Nordics, where sales rose 26 percent, SSU expanded its omnichannel strategy to open more directly managed flagship stores in key European cities.
The e-tailer, which includes platforms such as Addnature, Bikester, Campz, Fahrrad.de, Probikeshop and Wiggle, amongst others, reaffirmed its earlier revenue forecast of €1.40 billion to €1.55 billion for fiscal 2022, which ends Sept. 30, reflecting the continued organic growth of the enlarged group and severe disruptions in the supply of fully assembled bicycles. The gross margin is expected to remain more or less flat as the company has been able to raise prices slightly in the bicycle segment.
In a webcast, company executives indicated that the group continues to target annual growth of about 21 percent and a renewed increase in gross margin once conditions return to normal. Group CEO Stephan Zoll said SSU is looking to expand into new markets and segments, including new sports. SSU also plans to experiment with alternative business models. For example, it plans to expand its business with third-party vendors.
More details on our sister website SGI Europe.