The first quarter of 2020 offered several challenges for the Swedish online retailer Pierce that runs the online stores 24MX, XLMOTO and Sledstore. Despite this, Pierce managed to increase Net revenues during the first quarter by 16 percent. Net revenues amounted to 312 million SEK compared to 268 million SEK during the first quarter of 2019. Net revenues for the full year 2019 amounted to 1 243 million SEK.
Pierce sells gear, accessories and spare parts to motorcycle- and snowmobile riders. Today Pierce runs localized online stores in 17 European countries and over 80% of the revenue comes from markets outside Sweden.
– The lack of snow during the first months of the year had a negative impact on the Nordic market for gear and accessories for snowmobiles. Then came the COVID-19 crisis, which hit the European economy hard and poses a threat to most markets; including the motorcycle market. Many European countries have implemented radical restrictions impacting the movement of people within society. If you can’t ride a motorcycle to work, or can’t compete or practise on your motorcycle, you will not consume gear and accessories to the same extent as before, says Henrik Zadig, CEO of Pierce AB.
Pierce employs around 400 people in 6 offices and warehouses in Sweden, Poland and Spain. Several measures have been taken to meet the challenge of keeping the business virus-proof for the employees while remaining open for business 24/7. For example, by the end of March, most office staff worked from home.
– Great efforts have been required in order to adapt the business to such a rapid and drastic change. So far, our actions have been successful, and we continue to deliver products to our customers all over Europe in a timely manner. It feels good to be part of such a resourceful and committed organization, says Henrik Zadig, CEO of Pierce AB.
Pierce has grown every year since the start of the company 11 years ago. On the back of the current uncertain market conditions the company has reduced the forecasted revenues for the rest of the year. Therefore, some adjustments to the business have been made in order to minimize the risk and strengthen the company for the future.