Stubborn inventories hamper Shimano’s H1 2024 as brand pledges to back MTB trails

In Shimano’s H1 2024 financial report, the components business revealed that net sales from its cycling arm were down compared with H1 2023.

Shimano’s H1 net sales from its cycling segment decreased 20.7% from the same period of the previous year to 162,594 million yen, and operating income decreased 42.2% to 24,328 million yen.

Shimano noted global market inventories generally remained high while the supply and demand adjustments of completed bicycles continued.

Global sales

Overseas, in the European market, retail sales were firm in its major markets of Germany and Benelux countries in Shimano’s H1 2024. Elsewhere in Europe, sales were weak on account of delayed recovery in demand for completed bicycles and those suborn high market inventories.

In the North American market, although interest in bicycles was firm, retail sales of completed bicycles softened, again with inventories at a somewhat high level.

In the Asian, Oceanian and Central and South American markets, retail sales of completed bicycles were weak due to sluggish personal consumption on account of rising inflation and economic uncertainty, and market inventories were at a high level. In the Chinese market, due to continued popularity of road bikes, retail sales of completed bicycles were again favourable, and market inventories remained at an appropriate level. In the Japanese market, retail sales were sluggish as affected by the soaring price of completed bicycles due to yen depreciation, and market inventories remained somewhat high.

The firm said: “Under these market conditions, demand for SHIMANO 105 and other components for road bikes was firm. In addition, the Shimano Group received a favourable reception for its products, including a gravel-specific component SHIMANO GRX.”

Trail Born million USD pledge

Those financials come as Shimano has launched ‘Trail Born’, designed to help increase and sustain mountain bike trails and trail access around the world. That news is particularly pertinent with Tweedlove closing for good, with a blog post by founder Neil Dalgleish noting that there isn’t enough support for maintenance of trails in the area.

Trail Born will see Shimano donate $1 million USD per year, over the next 10 years to support and facilitate trail projects and trail advocacy organisations. The brand noted: “Building and maintaining great trails is expensive. Really expensive. Cost typically ranges from $10,000 to $45,000 per mile, which includes everything from permitting and impact studies to tools, materials, and labor. But Shimano believes the return on investment is priceless. Supporting trail building and trail advocacy helps protect and expand trail access. And that means more places for all of us to ride—and more opportunities for new riders, like kids, to discover this amazing sport.”