OSAKA, Japan (BRAIN) — Shimano is reporting that its bike-related sales were down 2.7 percent in the company's first half, which ended June 30. Operating income in the segment was down 11.5 percent.
Shimano said retail sales of complete bikes in North America were at about the same level as the first half of 2016, which distributor inventory was "somewhat low" in North America.
Bike-related sales were 129,080 million yen ($1.15 billion); operating income was 27,063 million yen. In the first quarter, sales were down 0.9 percent.
Outside North America, Shimano noted that weather was mixed in Europe in the first half, with good weather until mid-April, followed by unsettled weather. The company said European complete bike sales were "at the expected level" in Europe in the first half.
In China, growth in bike sharing hampered a recovery of retail sales of completed bicycles, Shimano said. In other emerging markets, retail sales in Southeast Asia and South America continued to lack vigor and remained at the same level as the previous year, but distributor inventories were at an appropriate level. In Japan, retail sales of both sports bicycles and community bicycles were lackluster, but distributor inventories remained at an appropriate level.
Sales in Shimano's fishing division, its second largest division after cycling, were up 0.6 percent to 33,799 million yen.
Across all its divisions, net sales decreased 2 percent from the same period of the previous year to 163,079 million yen. Operating income decreased 9.8 percent to 30,832 million yen.
