Revenue Round Up: COVID Effects Begin to Be Felt in Q2

Aug 7, 2020
by James Smurthwaite  
Shimano sales down 15% in first half of 2020

Shimano factory visit 2018

Despite notching some record high stock prices earlier this year, Shimano's bike division sales fell 14.6% in the first half of 2020 to 122,613 million yen. Operating income of the bike division segment also decreased by 19.7% to 22,963 million yen. Shimano's bicycle segment was hit especially hard in this period as the Japanese brand's overall sales only dipped 11.9% in the same period.

Shimano credits the dip in sales to the lockdown that swept across most of the world however it notes that the opening up of countries alongside government incentives and policies encouraging cycling lead to a rapid increase in sales toward the end of the first half of the year. Shimano has withdrawn its forecast for the rest of the year.

More info, here.

Accell Group Records strong June following lockdowns

Accell Group, whose brands include Lapierre, Raleigh and Haibike, recorded June sales 51% than last year but its Q2 as a whole was hampered by a drop in sales in March and April. March and April were down 26.7% average, however the group was able to recover this with May coming in at +23.2% and June +53.1%. After this topsy turvey start to the year though, the Group announced its sales were up 4% turnover up 8.8% for the first six months year on year.

Ton Anbeek, CEO, said: “The pandemic has boosted interest from consumers and Governments in cycling across Europe as an alternative means of healthy, safe and green mobility. We expect this to positively benefit our business in the mid to long term. For the short term, it remains uncertain which direction the pandemic will take. While our first priority remains the health of our people, we are working actively to enhance product availability in H2 and secure a strong supply base in early 2021 for a good start of the next bicycle season. We will do so while maintaining our focus on strict cost and cash control.”

Fox's Q2 Sales Slip Despite Positives for Cycling Division

Fox's sales declined 4.7% in Q2 to $183.1 million year on year, down from $192.1 million in the same period last year. The Specialty Sports Group, which includes Fox's cycling activities, posted a 10% growth in sales but this was offset by the Powered Vehicles Group that saw a decline of 14.5%. The increase in Specialty Sports Group products is primarily driven by increased demand in both the OEM and aftermarket channels.

Despite this slip in Q2, Fox's sales are still up by 3.9% for the first six months of the year with Specialty Sports Group specifically up 4.7%.

Mike Dennison, Fox CEO, said:" Fox's resilient second quarter results reflect the strength of our diversified customer base and performance-defining product portfolio, as well as the commitment and dedication of our talented management team. We overcame an unprecedented shutdown of our U.S. factories and economy associated with the COVID-19 pandemic which lasted for over half of our quarter and we were able to not only effectively restart our business but support an incredibly strong surge in demand for our products across all channels. In addition, our Specialty Sports Group was a standout success in the quarter, exceeding our pre-COVID expectations and delivering 10.0% growth."

More info, here.

MIPS' Sales Down 20% in Q2

MIPS' Q2 sales dipped 20% year on year in the April to June period this year down to SEK 66 million which brought its sales performance from January to June down 5% overall. The soft quarter has been blamed on the impacts of COVID-19 as "helmet manufacturers pulled the emergency brake" however, MIPS noticed an improved performance in June as the world emerged from its locked down state.

MIPS noted that snow helmets were a lot more sluggish than bike helmets due to uncertainty in the industry following the abrupt end of the winter season. In contrast, demand for bicycle helmets is strong for both commuting and recreational purposes.

More info, here.

Garmin Sales down 9%

In a week that included a cyber attack that brought the company to a halt and resulted in a $10 million ransom to restore control, Garmin reported that its sales were down 9% year on year over the second quarter. The biggest losses came from Garmin's outdoor, aviation, and automotive divisions, as you might expect in a pandemic, however these were partially offset by strong performances in the fitness and marine sectors.

Cliff Pemble, president and CEO, said: "Garmin delivered strong second quarter financial results in a period filled with unprecedented challenges. Business conditions rapidly improved from April lows driven by popular fitness, marine, and outdoor products. We believe these results affirm the resilient nature of our business and the strong utility of our products.”

More info, here.

GoPro Revenue Falls 54.1%

It was revealed that GoPro's revenue has fallen by more than 50% for the second quarter in a row as it submitted its Q2 report. For the period up to June 30, revenue fell 54.1% for Q2, which follows a 51% fall in Q1, both based on hte same period last year. The news follows GoPro pivoting to direct sales and letting 20% of its workforce go in April this year, which has apparently led to a 12% increase in revenue in Q2 over Q1 despite the poor sales figures.

Nick Woodman, CEO, said: "Our strategic shift to a more direct-to-consumer business with lower operating costs is working. Camera sell-through during Q2 demonstrates resilient consumer demand for GoPro and an increasing shift to online shopping. We believe GoPro has proven to be a part of global consumers' 'new normal' during the pandemic, and we feel well positioned for the remainder of the year."

More info, here.


  • 51 0
 Please for the love of god deliver my new bike. I sold my two bikes to afford the new and now I am bikeless. Pour one out for me!
  • 9 2
 In the same position as you mate. Ordered my propain tyee last month only to realise that the wait was going to be over 100 days until it arrived. Wishing I could put myself into a coma...XD
  • 3 0
 @iridewhatever: I think my solution will be to buy a second hand, less expensive bike to keep me entertained and sell it when my new bike arrives. 100 days crazy. My shop told me could ship any day. Mind you he has been saying that since the 6th of July when I ordered it. I called another shop about the same bike just to see what other shops are saying and was told not arriving till November!
  • 6 0
 This is exactly why I havent sold my bike for a new one yet. I dont want to be stuck without a ride.
  • 3 1
 Try ordering a ktm motorbike a day before the factory closed back in March, I pick it up tomorrow ????
  • 1 0
 @gearhead231: Smart move. The irony is that by the time it shows up I will have ample spending cash without including the sale of my bikes. That's what I get for being thrifty and responsible.
  • 21 0
 this why you always do 'n+1'
  • 4 0
 @fatduke: is it that all these sectors rely so much on manufacturing in Asia?
  • 12 0
 @artistformlyknowasdan: Dude, my wife said to me last night as I longingly watched mountain bike videos " funny how you have no bikes and at one point you had 4". Not funny.
  • 4 0
 @rebel12: good lord...that's tragic. Pouring one out for ya homie
  • 1 0
 @rebel12: pretty sure the adventure stuff gets built in India but gets QC in Austria.
  • 1 0
 @fatduke: Then I have no idea what's behind all of this. Hopefully this gets resolved. I know these are first world problems but man I miss biking. I usually get out for 3 rides a week.
  • 1 0
 @rebel12: yeah im being a little b***h about it and should be a bit more gracious really all things considered.
  • 2 0
 Bikeless is a bad place to be. I always strategic about that so I have something to ride.
  • 3 0
Surely riding a "whatever" has gotta be better than a coma. We all gotta be careful of what we wish for.!
  • 5 0
 I've not bothered selling my old bikes for quite a while, since I have plenty of storage space and, for me, my bikes are artwork. I've got some hanging in my house.

But with the pandemic I've been selling all my old or seldom used exercise and fitness equipment. Old weight equipment is selling on Craigslist for more than I paid new. I've sold my old Pivot Les, Yeti SB66c, Specialized Fatboy, not to mention a couple nice road-bikes. They're all selling for at least 30% more than they would have last summer. I have a road bike that has been on Craigslist off-and-on for the last 2 years. Looks like that's about to sell as well.

A local shop here in Portland that usually has 2000+ bikes in its warehouse now reports less than 200. There are great opportunities right now for us bike hoarders to convert bikes to cash and get someone onto a bike for a great deal for both buyer and seller!
  • 2 1
 @igxqrrl: "They're all selling for at least 30% more than they would have last summer."

"... a great deal for both buyer and seller!"

No need to sugar coat it, let's price gouge these noobs!!!
  • 1 0
 Just paid way too much for a Fox fork imported from the UK because I couldn't get one in Australia. Normally wouldn't have been an issue. Can 2020 and this CO-VID business please go away?!
  • 1 0
 Fox's production output has dropped - main reason for a drop in sales. The demand is there. I had to settle for a 2020 Fox fork and was this close to getting a competitor's shock. Only they've also been out of stock.
  • 2 0
 @igxqrrl: I've sold four bikes, a kids trailer and loads of parts, all the bikes sold in under 3 hours for asking price. Most of the parts sold within a week.
  • 22 0
 Everything's out of stock, hard to make sales with no product.
  • 7 0
 yep, no surprise that those brands posting really good May/June figures subsequently see a dip....because they've got nothing to sell or can't get it to consumers. It'd be interesting to know if there's bottlenecks in the system or whether production has dropped, or both.
  • 1 0
 @oatkinso: For full bikes its likely a forecasting issue with larger companies, they build to forecast months in advance and obviously didnt include the current situation in their numbers.

Brands pretty much move onto the next years stuff once the current is on order and waiting too so its super hard for them to then organise double the qty of bikes in short order, its not just frames, its getting hold of all of the extra parts (also being manufactured to forcasted / pre order numbers) and the time-slots to build them too.

E.g. Nukeproof typically get two batches of frames / bikes, adding a third batch to match covid demand probably isnt possible.
  • 14 0
 Funnier then hell that gopro is on here. With their sales fluctuations over the past 5 years you would swear covid happened in 2015.
  • 10 0
 My purchasing up 1000%
  • 7 0
 Thanks to Canfield Brothers I've been riding my Balance for a couples weeks already!!!!!
  • 1 0
 How do you like it? I can't find many reviews of it but I have been tempted by the frameset.
  • 1 0
 @chwk: I have a previous gen Balance but I love it. It picks up and carries speed like crazy and the grip is incredible. The back tire feels like it's just stapled to the ground.
  • 1 0
 @chwk: I'll second what BlackVR said, I have a 2016 Balance and it's very good. I'll bet the new ones are superb as well.
  • 8 1
 Shimano could boost their sales right back up by letting the Euro shops ship to North America again
  • 5 1
 If i can apply some bro-economics, I'd guess Accell is doing well because entry level bikes are selling well, while higher end stuff and expensive accessories (like Garmins and GoPros) are not.
  • 3 0
 Bro economist here. Accell isn't so much about mountainbiking. They're one of the early adopters of pedal assisted bicycles. Initially with the Sparta-met with a petrol motor (so officially a moped but optically a bicycle with a small combustion engine attached near the rear hub). They later moved to electrical assistance with their ION technology which they pushed among several of their brands and also several public recharging stations at restaurants and cafes, basically creating an infrastructure.

Back in the days as a student, for a business course I had to investigate a company and I picked Accell. They recently signed Nicolas Vouilloz (for Lapierre) and to me that was a huge deal. And I expected it to be huge deal for them too. I called them for an interview and the poor man didn't know what I was going on about, but he was keen to tell about their plans with pedal assisted bikes. That kind of says it, doesn't it? If your company signs Nicolas Vouilloz and you don't even know, mountainbiking isn't high on your agenda.

If it wasn't clear from the article, people are moving away from public transport. Heck, for a good while, public transport was even forbidden for people not traveling for their "crucial professions". So obviously more people are making the shift from public transport to bicycles. And as it are the elderly and otherwise vulnerable people who still feel uncomfortable in public transport, it are those who gravitate towards bicycles with pedal assist. Not for intense sports. Just for travel, work, shopping, visiting people etc. As international travel is discouraged, more people chose for a holiday near home and I wouldn't be surprised if this has inspired more people to buy a new bike for touring. Not necessarily with pedal assist. But also fast commuters/trekking bikes like those from Koga. So that's only the current high they're riding on at Accell. Soon schools will open again and traditionally, loads of young teens will need a bigger bike for their longer commutes and obviously that growth spurt that they get in they're early teens. These won't be e-bikes, but these will be loads of bikes.

Accell doing entry level bikes? I'd say their stuff is decent mid range to some high end stuff. Remember some of the top track cyclists ride Koga bikes too. Not saying track bikes are selling like hot cakes but I do think they do cover the full spectrum except for the low end (what you Americans would call "Wall-Mart bikes").
  • 4 0
 Wait until next quarter when Garmin reports that $10m it paid to free itself of ransomware! But seriously, do we know whether or not they actually paid the ransom?
  • 1 0
 Garmin raises prices in 3..2..1..
  • 1 0
 The whole ransomware story is just so 2020.
  • 2 0
 I can speak to Fox's sales. Purchased a new 40 and DHX2 in April. Got the DHX2 second week of July and wont see it until September. People don't wanna wait that long. Season will be nearly over by the time I get it.
  • 5 1
 If I were to judge by the sales in my local bike shops revenue should be up 1000%. You can't get tubes FFS!
  • 1 0
 I just gave 26" tubes to a guy that works at walmart because they cant get any. (for his own bike)
  • 2 0
 That surprises me that Shimano is down 15%. It took me two months to get low end parts for an older bike. All the low end Shimano parts and lower end bike parts in general are either sold out or high in demand.
  • 1 0
 IIRC they lowered production when the pandemic struck as they expected a reduced demand. It turned out demand was super high but if you've got little stock to sell, you just can't make that much money.
  • 1 0
 @vinay: True. The manufacturing supply chains just shutdown during CVD19.
  • 1 0
 I had loads of difficulty getting hold of XT parts (mechs, chains, pads) a few months ago, I even had to swap to resin pads so I had a bike to ride...
  • 1 0
 The industry of people who love to build the stoke are desperate for supply chain issues to get sorted and deliver bikes and gear that we all want to get out and use. The pandemic sucks, but ditching commutes for more time on the trails has been a party - now if we just manage to keep riders rolling through the end of the season. We've struggled to deliver $4-5k+ bikes for the past 2 months with frames and everything else oversold and delayed. WE FEEL YOUR PAIN!
  • 2 0
 When business is booming, please save some for when times get tough. We want you on the other side when we get through this Smile
  • 4 1
 How about reporting on all the brands whose sales are up? I’m sure it’s more than companies whose sales are down....
  • 1 0
 Sales are down because inventory is down due to factories closing for a time period and not being able to produce. If you can't produce supply you can't produce sales regardless of how many people want and will buy.
  • 3 0
 Suppliers have been able to offload tonnes of older stock that nobody seemed to previously want because shops are desperate to get something, anything to sell in their half-empty stores. They must be breathing a sigh of relief over that?
  • 5 0
 I think initially a lot of brands were way up. Now I doubt there are many. Initially my LBS was off the charts in both sales and service. Now they can hardly do anything because of supply issues. Living in a town where three-four huge supply warehouses are located hasn't really helped much (qbp, bti, jbi along with fox). Those poor guys cant get tubes, cables, components or much of anything else. They have turned away tons of repairs simply due to supply issues. I know recently they have scraped to bottom of the barrel for components just to finish some complete builds to make the sale. Stuff they normally wouldn't equip on a $4k bike (mixed calipers to rotors, cheap stems and handlebars, terravail tires etc). Not saying that any of that stuff doesn't function ok, it just makes for some quirky builds. I guess all I'm saying is that, initially there was a boom and a lot of companies were doing great. Now, I doubt there are many that are showing much growth still.
  • 1 0
 so many numbers...I know, it's not kinematics, but where's the cat...

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