Full-year financials from Shimano show the components giant’s bicycle division sales were up 4.6% in 2019 compared to the previous year, while operating income saw a 1% increase.
Annual sales in the bike division totalled 290,038 million yen (£2.03 billion) while total sales across all Shimano’s divisions were up 4.4% to 363,230 million yen (£2.54 billion).
Favourable European weather conditions supported decent sales of completed bicycles in 2019 in the region, Shimano said, while in North America sales remained at the same level as the previous year despite a decrease in total unit sales. Meanwhile, the downwards trend seen in the Chinese market up until last year has slowed, the firm confirmed, while emerging markets such as Brazil and Argentina continued to be sluggish throughout the year.
The new Deore XT and SLX MTB components and GRX gravel road components were well received in the market in 2019, according to the brand, while the Shimano Steps e-Bike components continued to be popular as with the previous year.
Looking to the future, Shimano voiced concerns in its report that, ‘the US-China trade issues and heightened geopolitical risks in Middle East will impact the global economy,’ as well as predicting the country’s economic climate may be affected by the unfolding of the upcoming presidential election. The report also cited Brexit concerns, foreseeing, ‘the economy in Europe threatens to decelerate due to Brexit turmoil.’
A moderate pace of economic recovery, consumption tax increase and slowdowns in employment in the Japanese market will also see Shimano monitor the trends in the area, and endeavour to enhance its management efficiency while pursuing the ‘creation of new cycling and fishing culture.’
The components brand predicts a 2.4% increase in total net sales to 372,000 million yen (£2.6 billion), and a 2.2% increase in bicycle division sales to 296,500 million yen (£2.07 billion) in 2020.
Yesterday, Shimano announced the opening of its 1,000th Service Centre in Europe with the licensing of Cycle Revolution of Colchester and Ipswich.