Shimano has released its financial results from Q1 of 2023, showing a 16.8% fall in sales in its bike division.
The company also reported it was down 31.8% in operating income in the same sector.
In its bike segment, net sales were 98,298 million yen – around £580 million – for the first quarter of 2023.
In a statement, the company 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.
“Overseas, in the European market, 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.”
In the North American market, Shimano reported “weak” sales with inventories at a consistently high level.
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 company’s homeland of Japan, the soaring price of completed bicycles due to yen depreciation and other factors slowed the pace of sales and market inventories remained “somewhat high”.
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Company-wide, sales were down 12.5% to 126,071 million yen with operating income decreasing 26.4% to 28,009 million yen
For the first half of 2023, Shimano is now forecasting ordinary income of 53,700 million yen, down 3.6% from its previous forecast.
For the full year, Shimano revised its net sales forecast to 460,000 million yen, down 8% from its previous figure.