Signa Sports United, a sports-focused e-commerce company based in Germany, has announced its plans to delist its shares from the New York Stock Exchange (NYSE) and undertake a comprehensive review of its business. This decision comes against the backdrop of a slowdown in demand.

The company has expressed that the expenses associated with meeting U.S. regulatory requirements outweigh the benefits of remaining listed on the NYSE. As part of its strategic evaluation, Signa Sports will wind down underperforming segments of its business and divest non-core assets. The company acknowledges the presence of significant liquidity and profitability challenges as it contends with an oversupply of sports products.

The decline in demand for Signa Sports' products can be attributed to the lingering impact of the pandemic. Sales have dipped below pre-pandemic levels, and retailers are grappling with mounting inventory, putting pressure on profitability.

In particular, the company's bike business has experienced disappointing performance this year. The surge in demand for bikes during the pandemic created supply shortages for manufacturers. However, recently, retailers have been raising concerns about a decrease in demand, coupled with an excess of inventory.

As a result of these challenges, Signa Sports forecasts that its fiscal-year sales will fall short of the outlook previously provided.

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