PIERER Mobility AG Adjusts Strategy Amid Market Challenges

PIERER Mobility AG reports that market development in the latter half of 2024 has fallen below expectations. Challenging macroeconomic conditions persist, with Europe's economy stagnating and the German market in recession. In the US, consumer purchasing power is subdued due to high living costs and prolonged expensive credit.

The motorcycle market sees declines, particularly in the US with a 6.3% drop in registrations through September 2024. Similarly, Europe maintains last year's levels, mainly via the low-price segment, but momentum has slowed. PIERER focuses on inventory reduction while supporting dealers amid increased net debt.

Within the bicycle division, restructuring is ongoing, with a significant impairment above initial estimates. Efforts to streamline operations include workforce reductions and consolidating R&D. The company aims to profitably operate the division with a niche and premium focus.

Consequently, PIERER rescinds its 2024 guidance due to lower-than-expected revenue and earnings. The Executive Board will downsize to two members: Stefan Pierer and Gottfried Neumeister, as part of strategic recalibrations.