BERLIN (BRAIN) — E-commerce company Signa Sports United, owner of WiggleCRC and the Vitus and Nukeproof bike brands, reported a 2% decline in first-half revenue, saying "subdued demand and market overstock" weighed on its results.
Its first-half net revenue was 441 million euros ($480 million).
The number of active customers on the company's e-commerce sites was down 15% year-over-year, to 6.1 million.
The company said it has secured a 150 million euro commitment from a major indirect shareholder, which it said will fund the operations of the business into its fiscal 2025. It said consumer demand remains below 2022 and stock levels across the sports industry remained "severely elevated."
Stephan Zoll, the CEO of SSU, said, "The first half of our fiscal year has been marked by challenging conditions across the sports retail industry. While macro headwinds and oversupply in the market have pressured our financial results, we have remained focused on positioning our business for success as operating conditions normalize. In response to the demand outlook in the near-term, we have conducted a comprehensive strategic repositioning of the business with the aim of enabling a return to profitable growth and positive cash flow.
"In addition, I am pleased to welcome key hires across our Bike and Tennis segments with the experience and industry insight needed to deliver the next chapter of SSU's growth story. Though our results in H1 FY23 have suffered as the market navigates another period of disruption, I am confident that the worst distortions are behind us and we remain fully aligned behind our renewed operating approach with a clear course toward long-term value creation."
In the last year, SSU opened a U.S. office for its cycling business in Park City, Utah. The office handles wholesale sales of Nukeproof, consumer-direct sales of Vitus, and a wholesale distribution business. Hotlines.
