Shimano
Shimano’s fiscal third quarter financial summary shows signs of consumer interest in bicycle cooling, but demand remains higher than it was before the pandemic.
In its Q3 report, Shimano revealed that inventory for high-end bikes remains low with higher demands compared to lower-end bikes which have seen declining interest. Shimano did not note that in Europe, despite some shortages, stock levels are reaching decent levels.
Shimano found that in the first three quarters of the year, component sales increased 20.6% from the same period last year to 384,654 million yen (2.59 billion dollars). Business operating profit reached 109,119 million yen, an increase of 21.6%. Third quarter sales jumped 25.7% from this time last year.
mips
MIPS said a reduction in demand for bicycle helmets led to a 39% drop in third-quarter sales year-over-year.
Net sales for the third quarter reached SEK 113 million ($9.9 million), down from SEK 185 million in the same period last year. It won’t just affect this quarter, as MIPS President and CEO Max Strandwitz said it could continue for the rest of 2022 and into the new year.
“Bicycle retailers around the world have generally accumulated excessively high inventory levels of bicycles and bicycle accessories and as a result helmet manufacturers have pulled the handbrake in terms of helmet manufacturing ahead of next season. .
“We believe this (bicycle) sub-category will return to growth driven by strong trends in e-bikes, commuting and people wanting to spend more time outdoors. We continue to see strong interest from the share of our customers wanting to launch new products in the bike sub-category, so we are confident in our continued investment in the bike.”
The lower third-quarter results were expected by MIPS because last month the company predicted lower revenue, with Max Strandwitz saying this was because “we realized we had underestimated the speed and magnitude of the slowdown in the bicycle sector”.
Garmin
Garmin saw a 4% year-over-year decline in its latest report, with the Fitness segment down 18%.
The decline in revenue is believed to be caused by lower demand for indoor cycling and advanced wellness products, with the latest quarter showing a drop from $1.19 billion last year to $1.14 billion. of dollars. The Fitness segment, which includes GPS devices, power meter pedals, indoor trainers and more, grew from $342 million to $280 million.
Thule
The Thule Group saw net sales fall 23% year-on-year as high inventory levels dampen demand for bicycle products.
Thule’s third-quarter net sales were SEK 2.13 million ($196.3 million), down from SEK 2.77 million last year, although this was in line with financial statements of the mid-quarter from CEO and Chairman Magnus Welander.
Following the report, CEO and Chairman Magnus Welander said: “Over the coming quarters, as previously announced, we will face a challenging market with greater uncertainty about the impact of consumer desire to buy in a uncertain world as well as retailers struggling to keep inventory levels low.”
Earlier this month, Thule’s Americas division laid off 34 employees in management, product development and manufacturing divisions.
We will continue to update this article as more revenue reports are released.
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