Component giant Shimano said that demand is cooling, but the Japanese brand continued to grow sales in the first half of 2022.
In its last financial results report, published on July 26, Shimano reported another jump in sales to 17.2% based on the same period in 2021, up to 249 billion yen (£1.5 billion), while operating income increase by 20.2% to 69 billion yen (£418 million).
Shimano said that in Europe, sales of bikes remained high and that inventory of complete bikes began to return to appropriate levels, while some regions show signs of cooling down.
In the North American market, demand for high-end complete bikes remained firm, but supply continued to be an issue, while demand for mid-level bikes slowed.
The full statement from Shimano said: “Although strong interest in bicycles that attracted attention globally started to cool down, demand for bicycles remained above the pre-Covid-19 levels. In terms of market inventories of completed bicycles, those of high-end class bicycles remained at a low level, as strong demand continued. Meanwhile, those of entry-class bicycles were at a high level as their supply caught up with the demand. Overseas, in the European market, sales of bicycles and bicycle-related products remained firm backed by demand for e-bikes that remained strong.
“Market inventories of completed bicycles approached appropriate levels as demand in some regions showed signs of cooling down. In the North American market, while demand for high-end class completed bicycles remained firm and market inventories remained at a low level, demand for middle-class bicycles showed signs of cooling down. In the Asian and South and Central American markets, strong interest in bicycles cooled off. In the Japanese market, while demand for sport bikes and e-bike remained firm, retail sales were sluggish due partly to the inventory shortages of entry-class road bikes.
“Under these market conditions, order-taking was brisk for a wide range of products, including the high-end models for road bikes, Dura-Ace and Ultegra, and sport e-bike components, Shimano Steps series. As a result, net sales from this segment increased 17.2% from the same period of the previous year to 249,203 million yen, and operating income increased 20.2% to 69,581 million yen.”
Across the Shimano Group, which also includes the sale of fishing products, Shimano net sales increased by 14.7% on the same period last year, despite some of Shimano’s factories being forced to temporarily close due to lockdowns.