HEERENVEEN, the Netherlands (BRAIN) — Accell Group reported that sales through the specialty channel in North America during the first half of the year were down. It also saw sales impacted by the closure of multi-sport retail chains. Sales through other channels, including online, are growing but it wasn't enough to offset the decline in sales to multi-sport retail chains, the company said.
The Dutch conglomerate, which owns Raleigh, Ghost, Haibike and Diamondback, posted 634 million euros ($740 million) in net sales in the first half of the year, up from 629 million euros last year. The organic increase in sales of 3 percent was largely on the back of growth in e-bike sales in Europe and an increase in sales of P&A there as well.
However, net profit was down 22 percent to 26 million euros from 34 million last year. The company noted that net profit was lower due to the impact of a one-off non-cash write down of 3.8 million euros on a tax asset related to the North American operations.
"Due to the expected lower sales to U.S. multi-sport chains, the current tax asset of 3.8 million euros has been written down and no new tax assets will be recognized. As a result the tax charge increased," the company said.
"Consumer purchasing behavior is changing, which has in turn led to a continuing change in distribution channels. In North America due to a deterioration in the retail market sales to multi-sports chains in the first half of the year were disappointing. Our sales via other (online) channels in North America are increasing as a result of the changes in distribution strategy for our brands Raleigh and Diamondback," said Hielke Sybesma, interim-chairman of the board of directors for Accell.
The company saw better results in Europe. In Germany and other neighboring countries it saw higher sales of e-bikes, particularly e-MTBs from Haibike, Ghost and Lapierre. But sales of regular bikes were lower in most countries, the company said.
For more, see press release.
