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Seven Sees First Quarter Gain

Published April 11, 2010

WATERTOWN, MA (BRAIN)—Seven Cycles sales grew 10 percent over the first quarter compared with last year. The growth exceeded Seven's projections and in order to respond, the company is hiring across the board to keep up.

“Sales of our Gateway complete bike program is one area that proved to be very strong,” said Mattison Crowe, Seven Cycles’ marketing manager. “It’s a little surprising as that’s a price category people thought was pretty dead."

Crowe agrees that there has been a retreat to value, but for your $3,400 to $4,200, a Seven customer gets a custom built frame and their pick of build kits.

“We added mountain bikes, cross, multi-sport, touring/commuting and 650c options for smaller riders to the Gateway program. People can get exactly what they want in a bike, which increases the value for them,” he said.

Because customers know they are purchasing a virtual bike, one that takes time to get built and delivered, the inclement weather has had less of an impact. Crowe says the company’s retailers do a great job of selling early in the year.

“But hiring for so many positions underscores that we don’t see this as a blip—it’s part of a sustained growth trend for the company. We think the economy is coming back a little and the value we offer at the Gateway price points is working,” he said.

Seven is hiring for positions in sales, service, performance design fit group and production. The turnaround time for a Gateway painted bike order has increased to eight weeks and they want to bring it back below six weeks with the new hires.

—Matt Wiebe

Topics associated with this article: Earnings/Financial Reports

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