Resilient net revenue growth; full year
FY2021 net revenue of €872 million, growth of 24% over FY2020 and
62% compared to FY2019
- Began trading on NYSE on December 15, 2021 and closed
acquisitions of WiggleCRC and Tennis Express in December
- Active customers exceeded 5.1 million, an increase of 32%
year-over-year and two-year growth of 68% (FY2021 vs.
FY2019)
- Increase in net revenue of 10% year-over-year to €247
million in Q4 FY21 and 24% for FY2021 to €872 million, despite
supply constraints in full-bike category
- Excluding full-bike sales, net revenue grew 19% and 31%
year-over-year for Q4 and full year FY2021, respectively
- Top-line resilience evident by two-year net revenue growth
of 51% (Q4 FY21 vs. Q4 FY19) and full fiscal year net revenue
growth of 62% (FY2021 vs. FY2019)
- Increase in gross profit of 16% year-over-year to €94
million in Q4FY21 and 33% for full year FY2021 to €339
million
- Net loss grew to (€46) million in FY2021 largely due to
one-off fees related to the public listing
- Adj. EBITDA grew 90% to €28 million year-over-year in
FY2021, an increase in adj. EBITDA margin of 111bps
- Pro forma for a full year of announced acquisitions, the
combined Company exceeded PF FY2021 guidance for both net revenue
and adj. EBITDA, achieving €1,362 million and €73 million,
respectively
SIGNA Sports United N.V. (“SSU” or the “Company”), the world’s
leading sports e-commerce and technology platform, today reported
financial results for the fiscal fourth quarter and year ended
September 30, 2021. Subsequent to the reporting period, SSU
completed its business combination with Yucaipa Acquisition
Corporation on December 14, 2021 in a transaction that provided
gross proceeds of $484 million, 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.
Stephan Zoll, CEO of SSU, said, “We are thrilled to begin our
journey as a public company and are looking forward to the
opportunity ahead of us. The Company is well positioned to execute
on our organic strategy as well as take advantage of attractive
M&A opportunities. In addition to our public market debut,
closing the acquisitions of WiggleCRC and Tennis Express mark key
milestones in our strategy.”
In Q4 FY2021, SSU continued to benefit from resilient consumer
demand across its fast-growing verticals. The Company achieved 10%
net revenue growth despite supply constraints and net revenue
growth of 19% when excluding full-bike sales. For the full FY2021,
net revenue increased 24%. When excluding full-bike sales, FY2021
net revenue growth was 31%.
Continued Stephan Zoll, “Our teams executed extremely well
against our stated strategy, delivering double-digit organic growth
and compensating for industry-wide supply shortages in the Bike
vertical, which dampened our topline results. We leveraged our
broad assortment and inventory position to profitably drive strong
organic growth in key geographies. The recent U.S. tennis
acquisitions of Midwest Sports and Tennis Express, and the recently
closed combination with Yucaipa and WiggleCRC, put us in a unique
position to globally scale and expand our offerings in 2022.”
Alex Johnstone, the Company’s CFO, said, “SSU’s results in the
fiscal fourth quarter are testament to the strength of our model;
we drove double-digit revenue growth whilst experiencing supply
constraints in the full-bike category. The strong demand across all
our verticals allowed us to expand gross margins while investing in
targeted customer growth. Pro forma for the announced acquisitions,
we exceeded guidance for both FY2021 Net Revenue and Adj.
EBITDA.”
Q4 FY2021 Consolidated
Financial Summary and Key Operating Metrics
FY Q4
FY Q4
YoY
FY
FY
YoY
EUR in millions
2020
2021
Growth
2020
2021
Growth
Key Financials
Net Revenue
€224
€247
10.0
%
€703
€872
24.0
%
Gross Profit
€81
€94
15.5
%
€254
€339
33.5
%
% Margin
36.2
%
38.0
%
182bps
36.1
%
38.9
%
277bps
Adj. EBITDA
€6
€1
(85.1
%)
€15
€28
90.5
%
% Margin
2.7
%
0.4
%
(233)bps
2.1
%
3.2
%
111bps
Net Income
(€10
)
(€21
)
110.5
%
(€26
)
(€46
)
79.4
%
Operating Performance
LTM Active Customers
3.9
5.1
31.9
%
3.9
5.1
31.9
%
Total Visits
74.2
75.5
1.7
%
250.2
274.4
9.7
%
Net Orders
1.8
2.1
20.8
%
5.5
7.1
29.4
%
Net AOV
€99
€94
(4.5
%)
€101
€101
(0.5
%)
Note: Financials and KPIs not inclusive of WiggleCRC / Tennis
Express. Please refer to Non-IFRS Financial Measures section for
further detail regarding disclosed metrics.
Q4 FY2021 Business Highlights / Commentary
- Business Update
- Agile response to full-bike supply constraints
- Targeted investments in customer acquisition resulted in strong
customer growth
- Further consolidation of market position in core geographies,
e.g. Nordics (+26%)
- Expansion of omnichannel strategy accelerated with the opening
of flagship and managed stores in key European cities
- Key Performance Indicators
- Active customers increased 32% to 5.1 million
- Total visits increased 2% in the quarter to 75 million, full
year reaching 275 million, a 10% increase due to easing of COVID-19
restrictions and depleted assortment in the full-bike category
- Effective customer acquisition resulted in record net
conversion leading to strong net order growth of 21% to 2.1 million
in the quarter, full year reaching 7.1 million, a 29% increase
- Decline in AOV due to mix-effect of lower full-bike sales
- Financial Update
- Net revenue growth of 10% in Q4 FY21 (19% growth when excluding
full-bike sales) to €247 million, despite supply constraints in
full-bike, full-year net revenues of €872 million, a 24%
increase
- Robust performance in bike parts & accessories and other
verticals more than offset the decline in full-bike sales,
resulting in 31% full-year growth in net revenues excluding
full-bike sales
- Strong growth in gross profit in the quarter to €94 million, a
16% increase, full year of €339 million, a 33% increase
- Adj. EBITDA decreased to €1 million in the quarter, due to
targeted investments in customer acquisition and key talent while
full-year results grew to €28 million, a 90% increase
- Pro forma combined business for a full year of ownership
exceeded stated guidance, achieving €1,362 million and €73 million,
respectively
Outlook & Guidance
Pro forma for a full year of announced acquisitions, SSU
successfully achieved its FY2021 revenue target and exceeded the
Adj. EBITDA target. Management is reiterating the previously
published financial guidance for FY2022 that reflects continued
organic growth of the enlarged group in the face of severe
disruptions in full-bike supply.
- FY2022 Guidance
- Net revenue: €1,400 million to €1,550 million
Management’s expectations are underpinned by the following key
assumptions
- Favorable structural megatrends remain, double digit topline
growth expected to return once supply chain pressures ease towards
the end of CY2022
- Uncertainty relating to consumer demand against inflationary
backdrop and COVID-19, expectation that consumers will cut other
discretionary categories before sports
- H1 FY2022 anticipated to see negative organic growth on a pro
forma basis; comping against strong lock-down induced H1 FY2021 and
full-bike supply constraints. Anticipated return to organic growth
expected from FYQ3 2022
Conference Call Information
The Company will host a conference call today, January 26, 2022,
at 8:30 a.m. Eastern Time to discuss the Company’s results as well
as expectations about SSU’s business. Interested parties may access
the conference call by dialing 1-855-979-6654 (in the United
States) or +44 20 3936 2999 (outside of the United States), along
with access code 690353. The conference call will be simulcast and
archived on the Company’s website at
https://investor.signa-sportsunited.com/.
Non IFRS Financial Measures
The press release includes certain non-IFRS financial measures
(including on a forward-looking basis). These non-IFRS measures are
an addition, and not a substitute for or superior to, measures of
financial performance prepared in accordance with IFRS and should
not be considered as an alternative to net income, operating income
or any other performance measures derived in accordance with IFRS.
SSU believes that these non-IFRS measures of financial results
(including on a forward forward-looking basis) provide useful
supplemental information to investors about SSU. SSU’s management
uses forward-looking non-IFRS measures to evaluate SSU’s projected
financials and operating performance. However, there are a number
of limitations related to the use of these non-IFRS measures and
their nearest IFRS equivalents, including that they exclude
significant expenses that are required by IFRS to be recorded in
the SSU’s financial measures. In addition, other companies may
calculate non-IFRS measures differently, or may use other measures
to calculate their financial performance, and therefore, SSU’s
non-IFRS measures may not be directly comparable to similarly
titled measures of other companies. Additionally, to the extent
that forward looking non-IFRS financial measures are provided, they
are presented on a non-IFRS basis without reconciliations of such
forward forward-looking non-IFRS measures due to the inherent
difficulty in forecasting and quantifying certain amounts that are
necessary for such reconciliations.
Forward Looking Statements
These forward-looking statements include, but are not limited
to, statements regarding: the Group’s intent, belief or current
expectations; future events; the estimated or anticipated future
results an revenues of the Group; future opportunities for the
Group; future planned products and services; business strategy and
plans; objectives of management for future operations of the Group;
market size and growth opportunities; competitive position,
technological and market trends; and other statements that are not
historical facts. Forward-looking statements generally are
accompanied by words such as “believe,” “may,” “will,” “estimate,”
“continue,” “anticipate,” “intend,” “expect,” “should,” “could,”
“would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,”
“outlook,” “suggests,” “targets,” “projects,” “forecast” and
similar expressions that predict or indicate future events or
trends or that are not statements of historical matters.
These forward-looking statements are based on the current
expectations, beliefs and assumptions of the Group’s management and
on information currently available to management and are not
predictions of actual performance or further results.
Forward-looking statements are subject to risks and uncertainties,
and actual results may differ materially from those expressed or
implied in the forward-looking statements due to various factors,
including, but not limited to, the following, as well as the risk
factors identified in the Group’s Securities and Exchange
Commission filings: our future operating or financial results; our
expectations relating to dividend payments and forecasts of our
ability to make such payments; our future acquisitions, business
strategy and expected capital spending; our assumptions regarding
interest rates and inflation; business disruptions arising from the
coronavirus outbreak; our financial condition and liquidity,
including our ability to obtain additional financing in the future
to fund capital expenditures, acquisitions and other general
corporate activities; estimated future capital expenditures needed
to preserve our capital base; our ability to effect future
acquisitions and to meet target returns; changes in general
economic conditions in the Federal Republic of Germany, including
changes in the unemployment rate, the level of consumer prices,
wage levels, etc.; the further development of online sports
markets, in particular the levels of acceptance of internet
retailing; our behavior on mobile devices and our ability to
attract mobile internet traffic and convert such traffic into
purchases of our goods; our ability to offer our customers an
inspirational and attractive online purchasing experience;
demographic changes, in particular with respect to the Federal
Republic of Germany; changes affecting interest rate levels;
changes in our competitive environment and in our competition
level; changes affecting currency exchange rates; the occurrence of
accidents, terrorist attacks, natural disasters, fire,
environmental damage, or systemic delivery failures; our inability
to attract and retain qualified personnel; political changes; and
changes in laws and regulations.
Forward-looking statements speak only as of the date they are
made, and the Group assumes no duty to and does not undertake to
update forward-looking statements. Actual results could differ
materially from those anticipated in forward-looking statements and
future results could differ materially from historical
performance.
Reconciliations
FY Q4
FY
2021
2021
Net Loss
(€21.1
)
(€46.0
)
Income Tax Benefit
(3.0
)
1.6
Earnings before tax (EBT)
(€24.1
)
(€44.4
)
Share of results of associates
0.4
1.3
Finance income
(2.9
)
(3.0
)
Finance costs
1.1
9.7
Depreciation and amortization
8.5
30.9
EBITDA
(€17.0
)
(€5.5
)
Total EBITDA Adjustments
17.9
33.2
Transaction related charges
0.1
0.5
Reorganization and restructuring costs
5.7
7.4
Consulting fees
9.3
22.5
Share-based compensation
2.7
2.7
Other material one-time items
0.1
0.1
Adj. EBITDA
€0.9
€27.7
Definitions
Net Online Revenue: Online revenue (excluding sales partners)
equal to net orders (post cancellations and returns) multiplied by
Net AOV
Platform Revenue: Revenue derived from non-1P E-commerce
business models (i.e., retail media sales, marketplace)
Gross Profit: Net revenues less cost of materials adjusted for
extraordinary write-offs
Adjusted EBITDA: Calculated as consolidated net income (loss)
before interest, taxes, depreciation and amortization adjusted for
certain items which SSU’s management believes do not reflect the
core operating performance of the operating segments of SSU.
Adjustments include material one-time items, share based
compensation, consulting fees, restructuring costs, transaction
related charges and other expenses.
Active Customers: Customers with one or more purchases within
the last 12 months, irrespective of cancellations or returns.
Total Visits: Number of visits including mobile and website. Cut
off at 30 minutes of inactivity and at date change. Not cut off at
channel change during session.
Net Orders: Orders post cancellations and returns.
Net AOV: Total online revenue (excluding sales partners) divided
by net orders (post cancellations and returns).
About SIGNA Sports United:
Based in Berlin, Germany, SIGNA Sports United is a leading
global sports e-commerce and tech platform in Bike, Tennis, Outdoor
and Team Sports with 7.4 million active customers and 430+ million
annual webshop visitors. SIGNA Sports United combines iconic
webshop brands such as Wiggle, Chain Reaction Cycles, Fahrrad.de,
Bikester, Probikeshop, Campz, Addnature, Tennis-Point, TennisPro,
Outfitter and many more. SSU connects more than 1,000+ brand
partners and 500+ independent offline retailers to its
platform.
Further information: www.signa-sportsunited.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220126005273/en/
SSU Press Contact
Erin Classen Allison + Partners erin.classen@allisonpr.com +1
202 756 7246
SSU Investors Contact
Matt Chesler, CFA Allison + Partners matt.chesler@allisonpr.com
+1 646 809 2183
SIGNA Sports United NV (NYSE:SSU)
Historical Stock Chart
From Mar 2024 to Apr 2024
SIGNA Sports United NV (NYSE:SSU)
Historical Stock Chart
From Apr 2023 to Apr 2024