Shimano US sales 'remain weak' as global revenue falls in the first quarter of 2023
Operating income fell by almost a third at Japanese component giant in the first quarter of 2023
Japanese component manufacturer Shimano has said its sales in the US cycling market "remain weak" as it saw global revenue fall in the first quarter of 2023 compared to the same period last year.
Published on Tuesday, the Japanese componentry giant's latest finance report revealed that its revenue from bicycle components fell 16.8% in the three months to the end of March compared with the same period of 2022. First quarter bicycle revenue totalled 98 billion yen (£591m), down from 118 billion yen (£710m).
In addition it said operating income decreased 31.8% to 22 billion yen (£133m) down from 32 billion yen (£195m).
The company's report said: "Although the strong interest in bicycles cooled down as progress was made toward recovery to pre COVID-19 day-to-day routines, interest in bicycles continued as a long-term trend."
"On the other hand, concerns about economic recession, including rapidly rising inflation, led to a slowdown in sales of completed bicycles, and market inventories generally remained high, despite ongoing supply and demand adjustments."
It listed central bank increases in interest rates, the fall out from the ongoing war in Ukraine as slowing down the cycling market.
However, in Europe, according to the report: "Interest in bicycles continued to be high, and retail sales of completed bicycles, especially e-bikes, was solid. Market inventories generally remained at high levels, although some high-end models were in short supply."
Get The Leadout Newsletter
The latest race content, interviews, features, reviews and expert buying guides, direct to your inbox!
Whereas in the North American it said: "Sales remained weak and market inventories were at a consistently high level."
The report continued: "In the Asian and South and Central American markets, although interest in bicycles was firm, sales remained somewhat sluggish due to cooling consumer confidence on account of currency depreciation and rising inflation.
"However, in the Chinese market, sales remained strong, especially for road bikes, owing to the growing momentum of outdoor sports cycling.
"In the Japanese market, the soaring price of completed bicycles due to yen depreciation and other factors slowed the pace of sales and market inventories remained somewhat high."
The company highlighted its 2022 release of its updated 105 road groupset and e-bike STePS (Shimano Total Electric Power System) components as measures that had helped to counter the tough global market conditions.
In February, Shimano's 2022 annual report showed that it had recorded its highest annual bicycle component sales.
It detailed a total net sales from its bicycle division of 517,436 million yen (£3.2 billion). That marked an increase of 16.6% on 2021, the previous record-breaking year.
At the same time operating income from cycling products rose 15.9% to just under 145,000 million yen (£900 million).
Founded in 1921, the Japanese company previously also produced golf and snowboard gear alongside its flagship cycling and fishing ranges. While bicycle components form Shimano’s main products, the brand also sells footwear, pedals and apparel.
Thank you for reading 20 articles this month* Join now for unlimited access
Enjoy your first month for just £1 / $1 / €1
*Read 5 free articles per month without a subscription
Join now for unlimited access
Try first month for just £1 / $1 / €1
Adam is Cycling Weekly’s news editor – his greatest love is road racing but as long as he is cycling on tarmac, he's happy. Before joining Cycling Weekly he spent two years writing for Procycling, where he interviewed riders and wrote about racing, speaking to people as varied as Demi Vollering to Philippe Gilbert. Before cycling took over his professional life, he covered ecclesiastical matters at the world’s largest Anglican newspaper and politics at Business Insider. Don't ask how that is related to cycling.
-
Five things to look out for ahead of the Tour of Flanders
Lidl-Trek's impressive form and Mathieu van der Poel's explosive start to the Classics season could make for quite the contest this weekend
By Tom Thewlis Published
-
A bikepacking trip is the perfect way to see the last viewable solar eclipse in the U.S. for 20 years - here's how
Following a 115-mile-wide path, the April 8, 2024 solar eclipse will last just under four-and-a-half minutes and can be viewed from multiple U.S. midwest and east coast bike routes
By Kristin Jenny Published
-
Shimano crankset recall to cost $18million
Japanese bike component giant reports a 24.6% drop in revenue and 52.3% drop in net profit
By Adam Becket Published
-
Trek and Shimano facing legal claim of $2m after cyclist ‘impaled’ by brake lever
Lawsuit alleges 17 counts, including negligent design
By Tom Davidson Published
-
Bikes could soon use AI to think for themselves, Shimano patent suggests
New invention shows automatic seatpost, suspension and saddle adjustments made through machine learning
By Tom Davidson Published
-
Hackers release raft of stolen Shimano data online
The Japanese components company suffered a ransomware attack earlier in November, now its data has been leaked
By Adam Becket Published
-
A love letter to Shimano 105
There might be better groupsets, but why would I want them when I love my trusty 11-speed?
By Adam Becket Published
-
Hackers could leak Shimano's designs to competitors, cyber security expert says
Ransomware attack on Japanese company left it in a "conundrum"
By Adam Becket Published
-
Shimano extends huge Hollowtech crankset inspection programme to Europe amid injury fears
760,000 Hollowtech road cranks recalled in USA and Canada originally
By Adam Becket Last updated
-
Shimano recalls 760,000 cranks after reports of failures resulting in injury
760,000 Hollowtech road cranks recalled in USA and Canada; the programme is expected to be expanded globally
By Adam Becket Published