Shimano Reports Brisk Sales in EU Thanks to Fine Weather
OSAKA, Japan – Shimano reports brisk sales in Europe since July thanks to the fine weather from July onwards. However, this was hardly reflected in the company’s results published today.
Global sales of the Japan based component maker continues to decline. Net sales of bicycle components dropped by 18.8% in the first nine months of 2016 compared with the same period in the previous year. Net sales of bicycle components decreased to JPY 192,939 million (1.68 billion euro). Shimano’s operating income decreased by more than a quarter (29.4%) to JPY 43,236 million (378 million euro).
EU: remarkable progress
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. However, thanks to the good weather from July onward sales picked up and became brisk, leading to a remarkable progress in the adjustment of the distributor inventories.”
North American market
The market situation on the North American market was less optimistic as Shimano reports that, “Retail sales of complete bikes remained somewhat weaker than in the same period last year. Nevertheless distributor inventories of bicycles were adjusted to a lower level.”
China & SE Asia
Even for China “inventories are returning to an appropriate level,” announced Shimano, “but there are no signs of recovery in retail sales of sports bicycles that have been dull since the previous year partly due to heavy rains in various regions. Retail sales of sports bicycles in South East Asia which was still robust in 2015 has lost its momentum and sales of bicycles remains soft.
Regarding its home market, Shimano notes that, “The sale of sports bicycles has been sluggish this year and inventories remained high.”
Overall economic outlook
Shimano continues to be less positive about the overall economic outlook. The components manufacturer notes, “A moderate recovery in Europe as a result of buoyant export to regions outside the EU because of the weak euro, despite a growing pessimism about the economic outlook.” In the US Shimano sees a “moderate economic recovery owing to the improvement in the labour market and personal incomes because of interest rates rises remained modest.”
* Shimano Inc. has announced figures in JPY currency only. EUR equivalent amount is calculated by up-to-date exchange rate for the reference.