Key strengths and competitive advantages
Structural online channel shift expected to more than double the market in a few years
Pierce’s addressable market is currently undergoing a structural shift from traditional offline to online shopping. The online share of the market is expected to grow with an average annual growth rate (CAGR) of 15 percent, corresponding to a doubling of the market size between 2019 and 2024.
A European online retailer for motorcycle enthusiasts with a track-record of outgrowing the fragmented market
The addressable market is highly fragmented and dominated by small local brick and mortar stores. Pierce is a leading online retailer and has a track-record of outgrowing both the total market and the online share of the market.
A Competitive customer offering with must-have external brands and private brands generating high gross margins
Pierce has a wide assortment of private brands and popular external brands. Private brands have significant benefits for the Company as they drive loyalty, protect from price competition, and ensure a quality margin profile. Sales from private brands made up approximately 40 percent of net revenues from private brands and external brands in 2020.
Scalable operations set-up supported by a well invested technology platform
Pierce has invested significant resources in creating a truly scalable European business. The Company has, among other things, invested in scalable and efficient fulfilment and logistics operations in Poland, and a technology platform with best-in-class IT system solutions.
Sophisticated return on investment (“ROI”) driven marketing and a growing loyal customer base
Pierce has been able to balance its rapid growth with profitability, enabled inter alia by a sophisticated ROI driven marketing approach. Pierce is actively working on optimizing both paid and free marketing channels.
Strong financial track-record driven by revenue growth, stable gross margins and scalability
Following a period of significant investments in a scalable European operating platform, Pierce has generated a net revenue growth (CAGR) of 27 percent between 2018 and 2020, and an adjusted EBIT margin of 6.4 percent 2020. Pierce’s adjusted EBIT has grown from 26 MSEK in 2018 to 97 MSEK in 2020 as a result of, among other things, high net revenue growth, a large share of sales from private brand with attractive gross margins, a high share of traffic and sales from free marketing channels, efficient operations, and scale benefits.