KENT, Wash. (BRAIN) — Accell Group N.V. on Friday announced global revenues were up 2.4 percent, but its North American business reported a 36 percent decline in revenue for the year. The CEO of the North American division told BRAIN it’s turned a critical corner in its long restructuring saga: it has cleared out more than 100,000 bikes left over from when its sporting goods channel sales collapsed in 2017.
Additionally, CEO John Short said Accell North America met its revenue and margin goals in January for the first time since he joined the company a year ago.
Short said he aims to return ANA to profitability by 2020, and said he’s on track.
“Our mandate is to get the business turned around and make it make money. We’ve got our head down and butt up, focused on that,” Short said.
However, the company’s European owners may not be willing to wait much longer. In the earnings announcement, Accell repeated an eye-opening promise it made first in December: that it is conducting a strategic review of the North American business and will announce a plan for the division no later than the third quarter this year.
“All options to eliminate profit dilution (from the North American business) are being explored,” the company said Friday. Previously, Accell said those options include selling ANA or right-sizing it.
Read the Accell Group financial release;