Despite hot summer, bike sales haven't picked up in full, says Accell

But despite the difficult season, turnover growth is expected from the group
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Accell Group - owner of Raleigh, Diamondback, Winora, Haibike, XLC, Koga, Ghost among others - is predicting higher turnover in the second half year in all product groups in its key territories. Higher turnover is also expected across the full year.

Accell said 2013's operating profit will be roughly the same as in 2012, while net profit is expected to fall due to higher financing costs and reorganisation charges in the Netherlands and North America.

Sports bikes and electric bikes continue to sell well for Accell, while 'pressure on sales of traditional bikes' has eased. 2014 bike lines have been well received, the group said, and inventory has returned to around the same level as 2012.

Accell Group boss René Takens said: “Developments in recent months show that the bicycle season has not really picked up in full following the bad conditions during spring, despite good weather in the summer months in most countries. Therefore, there is no material impact of sales catching up and more products were sold at a discount at the end of the season than anticipated. Meanwhile, inventory levels have again normalized.

"As our dealers are also encountering the effects of a difficult season, less bicycles of the new model year are currently sold in pre-season sales; dealers are frequently moving orders to the spring. Nevertheless, Accell Group’s turnover will also increase in the second half of the year, which also demonstrates that even during slow economic times the underlying long term trends of more consumer interest for mobility, health and sports are structural.

"We expect turnover to increase organically in the full year 2013 compared to 2012 while margins will be lower. On an annual basis, operating profit is expected to come in at approximately the same level as in 2012.”

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