The Philips unit also faces an unexpected threat from newcomer Acuity Brands, which had more professional systems sales than Philips did in the first three months of 2016 for the first time.
Acuity has outmanoeuvred competitors and seized U.S. market share with a superior sales and distribution strategy, and shares are up more than 300 percent over the past five years.
Philips Lighting CEO Eric Rondolat acknowledged in a press conference last week that his company “did lose a bit of traction in the past years” but said investments in its sales organisation are beginning to bear fruit.