STOCKHOLM (BRAIN) — MIPS reported fourth-quarter net sales increased 58% year-over-year and yearly net sales by 35% as the helmet technology company's bike sub-category showed revenue growth for the fifth consecutive quarter.
For the quarter, company net sales were SEK 144 million ($13.2 million) compared with SEK 91 million at the same time last year. For the year, net sales were SEK 483 million compared with SEK 357 million in 2023.
The Sports category, which includes bike helmet sales, had fourth-quarter net sales of SEK 133 million, a 56% increase year-over-year. For the year, the Sports category net sales were SEK 437 million, growing 35% from SEK 323 million in 2023.
"Global inventory levels are now at a healthier level than during the very turbulent years following the pandemic," said MIPS' president and CEO Max Strandwitz about the bike helmet market. "This does not mean that all inventory levels have now completely normalized though, and many retailers are still trying to come to terms with an unfavorable product mix."
North American bike helmet volume in the fourth quarter started to increase, Strandwitz said.
"Looking at the entire year, volumes are still down; however, positive to note is that the market recovery has begun. We are seeing a recovery in Europe, where there is growth in many markets once again. However, it is important to remember that there are relatively weak comparative figures for this market as European consumers have faced a challenging situation in recent years. The high levels of inventory that followed the pandemic have made many helmet brands cautious about new product launches. It will therefore be interesting to see how all the new helmet models are received when they are launched during the upcoming season."
Net income was SEK 53 million for the quarter, up 234% from SEK 16 million year-over-year. For 2024, net income increased 121%, from SEK 64 million to SEK 141 million. Fourth-quarter earnings per share increased from SEK 0.60 to SEK 2.00 year-over-year; for the year, it rose from SEK 2.43 to SEK 5.32.
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.
