STOCKHOLM (BRAIN) — A 50% drop in bike helmet sales in the fourth quarter led to MIPS' net sales decreasing 46% year-over-year. For the year, the helmet technology company experienced a 7% drop in net sales.
Net sales for the fourth quarter were SEK 107 million ($10.3 million) compared with SEK 198 million at the same time last year. For 2022, net sales were SEK 563 million, down from SEK 608 million in 2021.
"The fourth quarter closes a different, challenging but also successful year," said CEO Max Strandwitz. "A drastic slowdown in the bike sector in the second half of the year had a substantial negative impact on sales in Sport, our largest category. While we had to deal with the short-term challenging market for our largest category, we have taken big steps for the future through several initiatives and successes within other categories. We have also continued to strengthen our brand position, product portfolio and organization.
Strandwitz added a "substantial portion" of MIPS' fourth-quarter sales normally comes from the bike sub-category.
Fourth-quarter net income decreased 77%, from SEK 80 million to SEK 19 million year-over-year. Earnings per share also decreased by the same percentage, from SEK 3.05 from SEK 0.71.
"We stand by our earlier assessment that the bike market will start to recover during spring 2023," Strandwitz said. "Our assessment is still that over time there will be excellent opportunities for growth and solid consumer demand in the bike category, mainly driven by our increased market penetration and the strong underlying trends regarding these types of helmets."
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.
