STOCKHOLM (BRAIN) — MIPS' net sales decreased 35% year-over-year in the first quarter as bike helmet demand continued to wane.
Net sales were SEK 88 million ($8.5 million) compared with SEK 137 million at the same time last year. The helmet technology company reported that its other sub-categories, including snow helmet sales in North America, grew during the quarter.
"Bike resellers in the key U.S. and European markets have continued to have higher inventory levels in April than they would like, and the season started relatively late due to the cooler weather," said MIPS President and CEO Max Strandwitz, who added he expects the bike helmet market to improve in the second quarter.
Net income was SEK 14 million for the quarter, down 70% from SEK 48 million year-over-year. Earnings per share was down by the same percentage, from SEK 1.83 to SEK 0.55.
"Despite the drop in sales shown in the first quarter, we see many bright spots going forward," Strandwitz said. "Both we and the industry as a whole continue to be long-term positive about the bike market. We expect a gradual recovery of the bike market already in the second quarter and assess that MIPS as a company will return to growth in the second half of the 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.
