STOCKHOLM (BRAIN) — MIPS' first-quarter net sales decreased 6% year-over-year, and despite what the helmet technology company said was a return to more normal bike inventory levels, its Sport sub-category still declined 9%.
Net sales for the quarter were SEK 83 million ($7.6 million), compared with SEK 88 million during the same period last year. For the Sport sub-category, which includes bike helmets, net sales were SEK 71 million, compared with SEK 78 at the same time last year.
Overall net income was SEK 12 million for the quarter, down 20% from SEK 14 million year-over-year. Earnings per share was down 21%, from SEK 0.55 to SEK 0.44.
"Based on the market signals we've seen during the quarter, our assessment is that the large bike sub-category will develop well in 2024," said President and CEO Max Strandwitz. "As we have previously communicated, we believe that inventory levels in the entire bike sector, at the helmet brands and retailers, have now largely normalized across the board. For that reason, after 18 months of major de-stocking by both helmet manufacturers and retail stores, we are now expecting our sales to resemble end-consumer market patterns more closely."
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.
