Bike sales boost mixed outlook for Tandem

Tandem Group, the designer, developer, distributor and retailer of sports, leisure and mobility equipment is reporting a “mixed” outlook in an update to the London Stock Exchange this morning (28 May).

The firm says that bike sales have been “materially higher” with year to date revenue 77% ahead of 2019 and the forward order book “significantly higher” than last year to date.

A statement from Tandem said: “This has invariably placed a strain on the supply chain where we are working hard to replenish stocks as quickly as possible which has been hampered by the various degrees of lockdown in our countries of supply.”

Online sales, both direct to consumer and with the company’s national retailer partners have also been strong. Outdoor products, including Hedstrom and Airwave outdoor play, Kickmaster football training, Airwave trampolines, spas, gazebos and parasols have sold well as have a number of our Jack Stonehouse domestic electrical appliances. Although the supply chain from China suffered in the early part of the year, this is now broadly back to normal with regular supplies being received, said Tandem.

The statement added: “In the national retailer business, however, our customers have been more cautious, with the majority of toy shops closed. Although there have been few cancellations, a number of orders have been delayed which, despite the stronger online domestic sales referred to above, has had a material impact on revenue. National retailers have also been slower to place new orders until they have greater clarity of the situation. As a result, the national retailer order book is approximately 21% behind the previous year.”

Year to date Group revenue is slightly ahead of the prior year, although the overall Group order book is approximately 3% behind last year.

Tandem said: “We therefore expect Group revenue to fall behind the prior year during the summer period as a result of the lack of national retailer FOB orders and a limited supply of bicycles.

“At this stage it remains difficult to ascertain the overall impact on the full year but we will make a further update at the AGM and continue to update the market as and when we have greater visibility.”