Shimano Starts 2016 with Major Sales Drop
OSAKA, Japan – Shimano reported yesterday a 18.6% decline in net sales of bicycle components in the first half of 2016 compared with the same period in the previous year.
Between January and July the net sales of bicycle components decreased to 132,630 million yen (1.14 billion euro) compared with the same period last year. Shimano’s operating income decreased by more than a quarter (28.5%) to 30,586 million yen (262 million euro).
EU and US: higher levels of inventory
According to Shimano, “Bad weather in March and April greatly undermined retail sales of bicycles in Europe, resulting in a higher level of distributor inventories. In North America retail sales of complete bicycles were somewhat weaker than in the same period as the last year. Despite a subsequent improvement, distributor inventories of bicycles remain high.”
China & SE Asia
“In China the high level of distributor inventories are heading to an appropriate level although there have been no signs of recovery in retail sales of sports bicycles that have been lackluster since last year. Retail sales of sports bicycles in South East Asia is still robust, while the market in South America continued to be soft due to the economic slowdown and weak currencies.”
Regarding its home market, Shimano notes that, “The sale of sports bicycles lost momentum after last year’s increase and distributor inventories have become somewhat high. Retail sales of commuter bicycles remained weak in Japan.”
Overall economic outlook
Less positive is Shimano about the overall economic outlook. Just like in previous financial statements the component manufacturer continues to express, “Concerns for the frequent terrorist attacks which resulted in greater uncertainty concerning the economy in Europe.” The Brexit adds up to the uncertainty of Shimano’s market outlook in Europe. “In the US business sentiment showed signs of improvement as weak oil prices and the strong dollar, which had been a drag on corporate earnings, moderated.”
* Shimano Inc. has announced figures in JPY currency only. EUR equivalent amount is calculated by up-to-date exchange rate for the reference.