Shimano Q1 sales slacken… to 2021 levels

Shimano Inc sales hit 126,071 million yen in Q1 2023, down from 144,047 million yen in Q1 2022.

Focusing on bike-related sales only, net sales decreased 16.8% compared like-for-like with Q1 2022, to 98,298 million yen, with operating incoming down 31.8% to 22,123 million yen.

However, it was a tough comparison year – 2022 was a record performance for Shimano, hitting 517,436 million yen – a 16.6% rise.

Delving into the numbers, Q1 2021 sales were at 126,426 million yen – remarkably similar to Q1 2023 numbers. Arguably, that adds weight to the argument that the bike trade needs to be careful of focusing on declines versus exceptional times.

Shimano said on Q1 2023: “In this environment, demand for bicycles and fishing tackle showed signs of cooling down, and for the first quarter of fiscal year 2023, net sales decreased 12.5% from the same period of the previous year to 126,071 million yen. Operating income decreased 26.4% to 28,009 million yen, ordinary income decreased 27.4% to 28,596 million yen, and net income attributable to owners of parent decreased 29.7% to 20,203 million yen.”

Shimano provided some more detail on Q1 2023:

“Although the strong interest in bicycles cooled down as progress was made toward recovery to pre-COVID-19 day-to-day routines, interest in bicycles continued as a long-term trend. On the other hand, concerns about economic recession, including rapidly rising inflation, led to a slowdown in sales of completed bicycles, and market inventories generally remained high, despite ongoing supply and demand adjustments.

“Overseas, in the European market, interest in bicycles continued to be high, and retail sales of completed bicycles, especially e-bikes, was solid. Market inventories generally remained at high levels, although some high-end models were in short supply.

“In the North American market, sales remained weak and market inventories were at a consistently high level.

“In the Asian and South and Central American markets, although interest in bicycles was firm, sales remained somewhat sluggish due to cooling consumer confidence on account of currency depreciation and rising inflation. However, in the Chinese market, sales remained strong, especially for road bikes, owing to the growing momentum of outdoor sports cycling.

“In the Japanese market, the soaring price of completed bicycles due to yen depreciation and other factors slowed the pace of sales and market inventories remained somewhat high.

“Under these market conditions, the Shimano Group provided products to the market, including the new product SHIMANO 105 that is a high-end model for road bikes, and sport e-bike components, SHIMANO STEPS series.”