TOKYO (BRAIN) — Sales in Shimano's bike-product division were up 14% in the first quarter, compared to the same period last year. However the company said the pandemic-driven bike boom "showed signs of cooling down."
The company said that in North America, demand for bikes remained "firm" while inventories have recovered, particularly for entry-level and mid-level bikes.
Company-wide — including Shimano's fishing industry business — first-quarter sales were up 13.9%, to 144,047 million yen ($1.1 billion), while operating income was up 16.8% to 38,033 million yen.
In the bike division, sales also were up 13.9%, to 118,176 million yen, and operating income increased 17% to 32,455 million yen.
In its Summary of Financial Results released Tuesday, Shimano gave its usual broad overview of the global markets:
The global cycling boom showed signs of cooling down, with market inventories of entry-class and middle-class bicycles approaching appropriate levels, while demand centering around high-end class bicycles remained high.
In the European market, demand for bicycles and bicycle-related products remained firm as governments continued their policies to promote bicycles in response to growing environmental awareness. While demand for e-bikes remained strong, market inventories of entry-level and middle-class bicycles approached appropriate levels.
In the North American market, demand for bicycles remained firm and market inventories, centering around entry-class and middle-class bicycles, recovered to appropriate levels.
In the Asian and South and Central American markets, the cycling boom cooled off, and market inventories of entry-class bicycles remained at a slightly higher level.
In the Japanese market, while market inventories of road bikes remained at a low level due to steady demand for sport bikes, retail sales of community bicycles were sluggish, resulting in market inventories remaining at a higher level.
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.
Sales in Shimano's fishing business was increased 14.1% from the same period last year to 25,767 million yen, and operating income increased 14.8% to 5,564 million yen in that division. Other sales totaled 104 million yen.
Net income was up just 0.5% to 28,740 million yen.
Shimano modified its guidance for its first half and full year. While it maintained its previous projection of first-half revenues at 293,200 million yen, it raised its forecast ordinary income by 1.2% due to currency exchange fluctuations. For the full fiscal year, it raised its ordinary income projection by 0.9% for the same reason. Its full-year revenue projection of 580,000 million yen is 6.1% higher than 2021's total of 546,515 million yen. It did not revise its net income forecast, which remains 117,500 million yen, 1.3% over its full-year 2021 net income.
