HEERENVEEN, the Netherlands (BRAIN) — As a whole, Accell Group N.V. racked up record sales and net profits last year, but the Dutch company's North American profits and sales to IBDs did not meet expectations.
Accell's North American parts & accessories business registered a decline of 40 percent in sales in 2014, which Accell blamed on delivery problems following the integration of SBS and Raleigh, as well as a movement toward dealer direct sales by suppliers in North America.
Total North American sales — bikes as well as P&A — were down 9 percent to $127 million.
In an annual statement, the company said the integration of Raleigh and its SBS distribution business "has not yet resulted in the envisioned improvements."
The company said its bike sales to multi-sports retailers in North America grew last year, but sales to IBDs declined. It also said it saw a sales drop from a decision to stop selling "sports bikes" to the mass market in the U.S.
The company's North American bike brands include Raleigh, Redline, Diamondback, Lapierre, Ghost, Haibike and iZip. Its total bike revenues were up 4 percent in North America.
Electric bikes saw "a modest increase" in North American sales last year; while internationally, e-bikes grew from 35 percent to 41 percent of Accell's business.
Accell's North American sales amount to about 13 percent of Accell's business, and the declines here did not prevent Accell from registering a record profit of $28 million in 2014, on revenues of $957 million.
Internationally, Accell sold fewer bike units last year (1.73 million, down from 1.84 million in 2013) but generated more revenue from bike sales ($714 million, up from $680 million). The increase in average bike price was due to the growth in electric bikes.
René Takens, chairman of the Accell Group Board of Directors, said, "Accell Group had a good year in 2014, with favorable weather conditions and a slight improvement in the overall economic climate. The Dutch and German brands performed particularly well. While most markets remained stable or improved slightly, we were able to improve our turnover in virtually all the countries in which we are active, partly thanks to the popularity of our electric and sports bikes and the expansion of our parts & accessories business."
The company said it expects continued long-term growth in the bike business. It said an improving economy is driving consumer sales and it expects growth in sales and profits in 2015.
