STOCKHOLM (BRAIN) — MIPS' second-quarter net sales increased 45% year-over-year with the Sport category driven by snow helmet demand and less by bike helmets. The helmet technology company said that's creating an imbalanced bike helmet inventory level with many lower-priced products but fewer more expensive options.
Net sales for the quarter were SEK 206 million ($20.1 million), compared with SEK 142 million at the same time last year. Net income also went up 45%, from SEK 55 million to SEK 80 million. Earnings per share increased to SEK 3.04 from SEK 2.10.
MIPS President and CEO Max Strandwitz said the company has had more customer projects than in any previous year, primarily in the Sport category.
"During the spring, the market has speculated about whether growth in the bike sector as a whole is over after a period of extreme growth in connection with the pandemic," Strandwitz said. "Along with the majority of the industry, we do not believe this is the case. There is a lot of activity in the industry in terms of integration of the value chain from helmet brands that expand their channel offering directly to consumer sales, and from increased consolidation activity among brands. The general consensus seems to be that there will be a long-term increase in the demand for bike-related products, primarily driven by the positive trends we are seeing regarding electric bikes, commuting, and consumers wanting to spend more time outdoors."
For the first half of this year, MIPS reported net sales increased 53% to SEK 343 million, compared to the first half of last year.
MIPS' corporate headquarters is in Stockholm, and its stock is traded on the Stockholm Stock Exchange under the MIPS symbol. Stock quote at Marketwatch.com.
