STOCKHOLM (BRAIN) — Helmet technology brand MIPS reported that sales were up 16% for the first half of the year, with helmet manufacturers initially stalling orders until they got more clarity on tariffs.
First half profits were SEK 41 million ($4.2 million), down from SEK 52 million in the first half last year. Much of the sales growth in the half was achieved in the first quarter, with sales in the second quarter nearly flat at 1% growth. Revenues were up 40% in Q1.
CEO and President Max Strandwitz said the helmet industry had to process the U.S. tariff news before resuming orders late in the half.
"In early April, the imposition of high tariffs on goods imported into the U.S. was announced. The tariff package was extensive and larger than most people had expected, creating uncertainty in all our customer categories and cautious purchasing behavior among our customers, the helmet brands," Strandwitz said in a company statement.
"As much of the rhetoric centered on China, where most helmets are currently produced, many factories had to reduce production significantly. As the brands gained more clarity they communicated price increases to mitigate the impact of tariffs. These were relatively well received by retail and consumers and thereby the helmet brands started producing helmets at their suppliers again. As a result, we saw an acceleration in the end of the quarter, but sales did not reach the growth we saw in the previous quarter."
Strandwitz said MIPS customers have been focusing on moving production out of China, curtailing sales activity in recent months. "We believe that it will take a quarter or a few before they can focus on product development of new products again," he said.
MIPS' stock is traded on the Nasdaq Stockholm exchange. Stock quotes are available at nasdaq.com.
