The Berlin sporting goods retailer Signa Sports United (SSU), a subsidiary of the Austrian Signa Holding, which owns the online and multichannel retailers Fahrrad.de, Bikester, Campz, Addnature, Tennis-Point and Outfitter, continues to be in the red and is again dependent on financial injections from the parent company.
In the second quarter of 2023, SSU’s net sales fell by 23.5 percent to EUR 195 million compared to the same period last year. Adjusted Ebitda deteriorated by 44 million euros and was now negative at 59 million euros. Net debt for the second quarter of fiscal 2023 was €314 million, according to the company. As reasons for the negative performance, the company cites the ongoing lower demand, which is still below the level of the past financial year, and the resulting high inventories, which increase the pressure on margins and cash flow.
Just a few weeks ago, SSU sold the loss-making sneaker and streetwear specialist Stylefile, after SSU announced in March that it wanted to separate. The new owner is the urban wear and sneaker supplier Defshop.
Financial injection of 150 million euros
In order to further support the company, the parent company Signa has now promised another cash injection. “While the operating environment remains turbulent, we have taken decisive steps to protect our cash position with an additional commitment of €150 million from our major indirect shareholder to support the business through to cash flow generation in a normalized market environment,” said Alex Johnstone, the company’s chief financial officer.
It was only in February that the Austrian Signa Holding announced that it would support the sports retailer, which has been listed on the New York Stock Exchange since 2021, with 130 million euros.
Stephan Zoll, CEO of SSU, nonetheless expressed his confidence: “Although our results in the first half of FY23 suffered from another market disruption, I am confident that the worst of the dislocation is behind us and we remain fully behind our renewed operational approach with a clear course for long-term value creation.” For example, new employees have been hired in the bicycle and tennis segments “who have the necessary experience and industry knowledge to write the next chapter in SSU’s growth story,” adds Zoll.