Shimano says bike demand “cooling” but ahead of pre-Covid levels

Shimano has described global demand for bikes as “cooling” in its Q3 financial update, but to levels that remain ahead of pre-pandemic trends.

As the industry rumour mill whispers of signs of strain, Shimano said that from its view “in terms of market inventories of completed bicycles, those of high-end class bicycles remained at a low level, as strong demand continued. Meanwhile, those of middle-class bicycles approached appropriate levels, and those of entry-class bicycles remained at a high level.”

In Europe sales have remained “firm” with inventories described as having reached appropriate levels, though many in the UK market do appear to be warning of overstock on many fronts. Furthermore, consumer sentiment is running at a low ebb and Shimano acknowledged that inflation and concerns over energy supply were key headwinds for the markets picking up.

Meanwhile in North America, inventories of high-end bicycles continued to see strong demand with low inventory, while mid-tier bikes were said to be seeing a drop off with consumers.

Overall this resulted in a net sales increase in the bicycle division of 20.6% versus the same period in 2021, with the quarter reaching 384,654 million yen (£2.25 billion). Operating income increased 21.6% to 109,119 million yen.

Across the board and including fishing sales the company saw net sales 18.3% over the year to date and the same rise applied to operating income.

According to the parts giant, forward order-taking “was brisk for a wide range of products, including the new Shimano 105 and sport eBike components such as the Shimano STEPS series.”

Shimano has revised up its full-year forecasts, but only as a result of the strength of the U.S. Dollar against Asian currencies. The forecast is for 1.7% more in net sales and a 6.2% net income increase. That would put full year figures at 590,000 million yen, up from 546,515 recorded in 2021.

In other news, the brand this month launched updates to its gravel shoes under the RX8 and RX8R banners.