This time last year, the lockdowns were lifting and we were starting to understand the positive effect the COVID-19 pandemic was having on the cycling world. Sales were skyrocketing as people emerged from lockdown eager to try new hobbies and explore alternative transport options. Bike brands have been posting record sales since that time and that continues this quarter, however there are also signs that the bubble could be starting to lose some air. Let's get into all the key details from brands recent Q3 revenue reports.
Shimano sales up 56% despite signs of waning Bike Boom
Shimano has announced its bike sales division recorded a 56% increase in Q3 sales year on year to 319,007 million yen, and operating income increased 103.4% to 89,764 million yen. While previous statements from Shimano have highlighted the strength of its Deore groupset
, this time its recently released Dura Ace and Ultegra road groupsets. Shimano was also able to increase its production in Japan
and overseas despite tightening of logistics and temporary shutdowns due to local restrictions.
Shimano says that its inventories remained low across the globe but it noted that, "there were signs of a lull in the cycling boom" in North America, South and Central America, and Oceania and "demand for entry-level bicycles appeared to have settled down" in Asia. More info, here
Fox Records fifth consecutive record quarter
Fox has recorded a fifth consecutive record quarter with a sales increase of 33.3% to $347.4 million, compared to $260.7 million in the same period last fiscal year. The Speciality Sports Division, which includes Fox's bike brands, grew stronger than the company as a whole with a 48.1% increase.
"Through sheer perseverance Fox's global team has delivered a fifth consecutive record revenue quarter, despite the disruptive impact of the pandemic on global supply chains, inflation, and labor availability,” commented Mike Dennison, Fox’s Chief Executive Officer. “I am very proud of our team members who continue to exemplify dedication and commitment to our customers by exceeding expectations and strengthening our brand during this unprecedented operating environment."
For the full fiscal year, Fox is expecting sales of $1,272 million to $1,292 million.More info, here
Giant revenue up 18% but profits down
Giant set a third consecutive record quarter for revenue with a 2.5% increase over the same period last year up to NT$19.95 billion. This means that it is now 18% up year-on-year on sales for the first three quarters of 2021 to NT$61.94 billion.
However, increased component costs and logistics meant that these record sales did not translate into bigger profits for the quarter as net profit after tax was NT$1.28 billion for the quarter, a decline of 13.6% from a year ago. It also said that component shortages affected overall production.
E-bikes grew 37% over the three quarters and now account for about 31% of the Group's business.More info, here
.Dorel Sales Down 1.7%
This is probably the last time we'll feature Dorel's financial reports before its Sports division gets absorbed into the privately held Pon Group
, an $810 Million deal that is expected to be finalised before the end of Q1 2022.
The segment's third-quarter revenue was US$740.9 million, down 1.7% from US$753.4 million last year. It also reported a net loss of US$37.0 million vs a net profit of US$26.2 million last year.
Martin Schwarz, CEO and President, said, "The third quarter was highlighted by the agreement reached to sell Dorel Sports. The transaction has accomplished our major objective of unlocking shareholder value by monetizing Dorel Sports at a time when the demand for bicycles is strong. We will provide further details of the use of net proceeds once the deal closes, which is expected before the end of the first quarter next year. Our focus now is to replicate the success achieved in our sports business at Dorel Home and Dorel Juvenile."More info, here
Mips' net sales increased 81% year on year for Q3, which keeps it in line with the year-to-date growth of 82%. The sales aren't broken down by sector but apparently the increase in turnover is apparently mostly driven by the strong demand for bike helmets in the Sport category.
Max Strandwitz, CEO, said, "During the third quarter the great demand for all kinds of helmets in the Sports category continued. This was mostly driven by high sales growth for solutions for bike helmets. All over the world, inventory levels in retail remain low and our assumption is that they will not return to normal levels in the immediate future. As communicated in the last interim report, we see continued high demand for our products in this category also going forward."More info, here