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Shimano bicycle-related sales fell 25% in the first three quarters

Shimano bicycle-related sales fell 25% in the first three quarters

October 29, 2023

According to reports, Shimano reported that sales of bicycle-related products fell by 24.8% in the first three quarters of this fiscal year compared with the same period last year, and bicycle business operating income fell by 48.8% during the same period.

Companywide, Shimano's net sales fell 19.8% from a year earlier to 375.264 billion yen ($2.5 billion). Operating income fell 43.0% to 72.086 billion yen, ordinary income fell 35.8% to 96.221 billion yen, and net profit fell 47% to 60.169 billion yen.

Shimano said: Although the strong interest in bicycles has cooled down, as a long-term trend, people's interest in bicycles remains high. On the other hand, despite the continuous adjustment of supply and demand, the overall market inventory is still at a high level.

The company said inventory levels remain high in Europe and North America; Germany and the Benelux countries in particular have strong interest in bicycles, but North American complete vehicle retail sales remain weak.

In markets in Asia, Oceania and Central and South America, bicycle retail sales “are still somewhat sluggish due to rising inflation and economic uncertainty leading to a cooling of consumer confidence, and market inventories are at a high level.

However, sales in the Chinese market are strong, especially for road bikes, and inventories in the Chinese market are at appropriate levels.

Shimano's fisheries division reported that net sales in the fisheries-related divisions increased 3.4% compared with the same period last year, although fishing operating income fell 7.3%.

full year forecast

Shimano said unfavorable weather conditions in the spring did not have as much of an impact on orders as expected, and a stronger U.S. dollar led to some non-operating income growth. As a result, Shimano now forecasts full-year company-wide revenue of 460 billion yen, down 27% from full-year 2022 but up 2.7% from the previous forecast. Full-year operating income is forecast at 77 billion yen, down 55% from last year but 10% above previous guidance. The company noted that the forecast includes unusual losses from the free inspection program.

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