Pierer Mobility announced declining sales, company restructuring
Back in August, Pierer Mobility has reported a negative result for the first half of 2024. According to the company, the main drivers behind the results were the decline in sales due to the economic environment (particularly in the USA), expenses in connection with the restructuring of the Bicycle segment as well as the production and personnel costs in Europe.
Pierer Mobility is the parent company of KTM, Husqvarna, GASGAS, WP Suspension, MV Agusta, KISKA, Husqvarna e-bikes, and GASGAS e-bikes.
Now, it is apparent that the company is really in a tight situation as it announces several changes, including the reduction of its executive board from 6 to just 2.
“The second half of the year at Pierer Mobility is generally characterized by a high-margin product mix, especially in the offroad segment. However, the available registration data for the overall motorcycle market in the USA for the period from January to September 2024 shows a decline of 6.3%. September was also the weakest month since January 2024 with a decline of 14.6%, meaning that a rapid recovery cannot be expected,” said the company in a press release.
One of the strategies that the company will be implementing is destocking. What it means is that dealer inventory must go out, possibly at more competitive prices, so that these stocks would translate into cash. Another strategy that Pierer will be implementing is laying off staff. According to Pierer Mobility’s statement, it will be managing operating costs in its bicycle division by reducing manpower and will consolidate all Research & Development activities for its bicycle brands.
The company also admits that its 2024 revenue targets will not be met and has since canceled its 2024 financial year guidance.
Finally, Pierer Mobility has reduced its board of directors, from 6, it is now down to just two people: Stefan Pierer and Gottfried Neumeister as CEO and Co-CEO, respectively.
The Global Pandemic has brought companies like KTM and other premium motorcycle brands to new levels in terms of sales. In January 2023, Pierer Mobility reported that its motorcycle brands has sold a combined 375,612 motorcycles in 2022, having strong markets in Europe, North America, India, and Australia.
