Shimano has reported a 17.7% fall in sales of bicycle components in the first half of 2023, compared to the first half of last year.
Net sales in the brand’s bicycle division fell to ¥205 billion (around £1.1 billion), with operating profit also down by 39.5% to ¥42 billion (circa £230 million).
The company says this is the result of “weak” demand for its products in many key markets worldwide.
In Europe, Shimano said demand for complete bikes was low with the brand citing “unfavourable weather conditions” in early spring as one of the contributing factors along with high inventory levels.
The brand expects this to cause a delay in recovery in demand for the its products in the second half of the year.
On the North American market, a spokesperson for Shimano said: “Retail sales of completed bicycles remained weak and market inventories were at a consistently high level.”
In the Asian, Oceanian and Central and South American markets, although interest in bicycles was described “firm,” sales were “somewhat sluggish” due to cooling consumer confidence due to rising inflation;
However, in the Chinese market, sales remained strong, especially for road bikes, owing to the continued popularity of outdoor sports cycling.
In the Japanese market, sales were described as sluggish. This was impacted by the rising price of completed bicycles due to yen depreciation and other factors.
Shimano also said that inventory in its homeland remained “somewhat high”, so also contributed to the sales figures.
The brand has also said that ongoing production cutbacks at factories are making it “difficult” to absorb the rise in manufacturing cost ratio.
Looking ahead, Shimano has revised its forecasts downwards for the second financial quarter in a row due to current trends in the first half of fiscal year 2023.
The brand now expects sales of ¥450 billion (£2.48 billion) in 2023, down slightly from the ¥460 billion (£2.53 billion) forecast at the end of the first quarter.