Berlin-based Signa Sports United reported net revenue grew 48 percent in the fiscal second quarter ended March 31 to €269 million. The gains reflect the full contribution from the acquisitions of WiggleCRC and Tennis Express.

Gross profit increased 37 percent to €98 million in the quarter while adjusted EBITDA fell to a negative €17 million from a profit of €4 million a year ago. The net loss widened to €37 million from €11 million a year ago, largely impacted by one-off accounting charges related to the public listing

Active customers reached 7.4 million, representing an increase of 62 percent year-over-year.

Stephan Zoll, CEO of SSU, said, “After completing our first quarter as a consolidated group, SSU has emerged a stronger company with a deeply aligned strategic vision and broader customer reach. Despite the known macro-economic challenges in the current environment, we continue to successfully deliver on our strategic priorities with a focus on positioning ourselves for the next chapter of our growth trajectory in the mid-and long-term.”

In Q2 FY22, prolonged supply chain disruptions across the full-bike category and especially among e-bikes led to significant unmet demand in the market. Additionally, the macro environment softened as inflation and the geopolitical situation weighed on consumer sentiment, and the quarter comped against a strong Q2 FY21 that was bolstered by COVID-induced restrictions and lockdowns. Nevertheless, net revenue and gross profit grew on a reported basis, as the Company’s scale increased. SSU’s actions to drive demand also led the customer base to expand to 7.4M active customers.

Alex Johnstone, the Company’s CFO, said, “SSU’s +48 percent year-on-year top-line growth is a testament to the enhanced strength of our platform and the broadened reach provided by our recent acquisitions. While challenges in the market have weighed on performance in the short-term, we see numerous pathways to growth and are confident the steps we are taking today will bring us closer to our long-term financial targets.”

In its fiscal first quarter, the online sports platform completed its business combination with Yucaipa Acquisition Corporation on December 14, 2021 and began trading on the NYSE on December 15, 2021. The company also closed the acquisitions of WiggleCRC and Tennis Express on December 14 and December 31, 2021, respectively.

The company’s brands include Wiggle, Chain Reaction Cycles, Fahrrad.de, Bikester, Probikeshop, Campz, Addnature, Tennis-Point, TennisPro, and Outfitter.

Outlook and Guidance
Management confirmed the updated guidance released on May 3, 2022, reflecting ongoing severe supply disruptions in the full-bike and especially e-bike category, and increased macroeconomic uncertainty.

  • FY22 Guidance
    • Net revenue €1,250 million to €1,400 million; and
    • Adjusted EBITDA margin (3.0 percent) to 0.0 percent.

Photo courtesy Signa Sports United