STOCKHOLM (BRAIN) — MIPS' net sales dipped 20% in the second quarter with the losses blamed on the COVID-19 pandemic and subsequent stay-at-home orders.
Net sales for the April-June were SEK 66 million ($7.4 million), down from SEK 83 million ($9.4 million) year-over-year. Organic net growth dropped 19%. Net income was SEK 16 million ($1.8 million), a drop of 45% year-over-year. Earnings per share was SEK 0.61 ($0.069), a 47% decrease.
CEO and President Max Strandwitz said despite the "soft" beginning to the quarter because of COVID-19, demand for helmets increased at the end of the quarter in June. Online sales also helped stem further losses.
"Our customers have achieved good sales in the online channel throughout the period, but since the online purchases of helmets still account for a minor part of total sales, this has not mitigated the lost sales in the traditional sales channels," Strandwitz said.
Because the winter season ended prematurely, demand for snow helmets decreased, hurting overall sales, Strandwitz said.
"In previous years, a majority of our customer deliveries in the second quarter consisted of MIPS solutions to snow helmets for the coming winter season," he said. "This did not occur this year. ... We did also see a similar development within the moto category with very cautious ordering from our customers in the beginning of the quarter."
Going forward into 2020, Strandwitz sees demand increasing for less expensive bicycle helmets because of the number of new cyclists seeking alternative transportation modes. "In the last month, we have seen that the demand for bicycling helmets has increased within most price points, and we are convinced that this positive development will continue," he said.
MIPS' corporate headquarters is in Stockholm. Its stock is traded on the Stockholm Stock Exchange under the MIPS symbol. Stock quote at Marketwatch.com.
