How Jamie Erdahl Made Good Morning Football Her Own
Signa Sports United reported major revenue growth in its fiscal third quarter — but also a modest loss — as it restructures into a larger business.
The bicycle and tennis equipment company saw net revenue grow 29.2% to $329.7 million, reflecting the addition of two new companies under Signa’s umbrella.
- In December, Signa went public through a SPAC merger and closed the acquisitions of British bike retailer Wiggle and Tennis Express.
- The merger with Yucaipa Acquisition Corporation, run by former Pittsburgh Penguins owner Ron Burkle, valued Signa at $3.2 billion and raised $645 million.
- Wiggle had around $500 million in annual sales at the time of the acquisition.
The acquisitions helped push back against weaker consumer demand to push user traffic up 16% year-over-year. Signa also owns Chain Reaction Cycles, Fahrrad, Bikester, Probikeshop, CAMPZ, Addnature, Tennis-Point, TennisPro, and OUTFITTER.
Signa’s stock was essentially flat following the earnings release on Tuesday — and is down over 25% in its time as a public company.
Changing Gears
The company took a $13.2 million adjusted EBITDA loss in the quarter, compared to a gain of the same amount a year prior. Signa chalked up the loss to one-time expenses related to its public listing.
Signa secured a $152.6 million credit line to power growth, with CFO Alex Johnstone naming its logistics and technology platform as a target for investment, plus an additional $203.5 million option for acquisitions.
