The disruption of the U.S. sporting goods retail landscape, which is also affecting Dorel Sports (see the related article in this issue), has led the Dutch-based cycling group to scale down its exposure to the multi-sport channel in North America as the company goes under the management of a new chairman and chief executive, Ton Anbeek, who took office on Nov. 1.
Citing the unanticipated termination of a contract with a large multi-sport chain and an overall tough market for bicycles in the region, which has been putting pressure on traditional bike dealers as well as multi-sport retailers, Accell said it will further adjust its organization in North America, integrating operations and replacing senior management.
Accell says it sees sound opportunities in North America for the development of its omni-channel operations and the further evolution of the electric bike market, which is running behind Europe.
In fact, Accell has been experiencing fast growth in its North American sales of e-bikes and its online sales – through its own web stores and third-party e-commerce. A cooperation with Beeline for home deliveries, ready-to-drive bike assembly and servicing is doing well.
The reorganization in North America and related paring down of inventories will have a negative effect of around €5 million on the group's results for the second half of this year. Global revenues will be higher than in the second half of 2016, despite the strong decline in North America. However, the underlying operating result will be lower, due also to the cost of implementing a new group strategy. Investors reacted by sending down Accell's stock price in Amsterdam by 8 percent.