Following the boom across the cycling industry over the past few years the industry is slowing down with demand falling along with revenues although not every piece of news is negative. Let's get into all the key details from brand's recent revenue reports.
The Leatt Corporation has reported its Q3 revenue dropped by 48% with revenue for the first nine months of 2023 falling by 43% when compared to the same period in 2022.
In the quarter finishing September 30 Leatt states global revenue was down from $23.2 million in the same quarter last year to $12 million. Global revenue for the first nine months of 2023 saw similar results as it fell from $65.4 million last year to $37.4 million in 2023.
CEO Sean Macdonald said: "Although our results for the third quarter of 2023 continued to reflect constrained ordering patterns, particularly from our international distribution partners who placed orders in early 2023 at the peak of overstocking conditions and constrained ordering sentiment, they do not reflect the current marginal uptick in sentiment that we are experiencing at the dealer and consumer level."
Garmin has seen a great third quarter as it reports a 12% year-over-year rise in revenue.
During Q3 Garmin stated its fitness revenue rose by 26% compared to the same quarter in 2202 as company-wide consolidated revenue rose from $1.14 billion in 2022 to $1.28 billion. Garmin saw nearly all segments record revenue growth, only its Marine business had a drop of 7%.
President and CEO Cliff Pemble said: "We delivered outstanding performance in the third quarter with double-digit percentage growth in revenue, operating income, and earnings.
“Looking ahead, we are well positioned for the holiday selling season with a strong lineup of innovative products, which gives us confidence to raise our outlook for the remainder of the year.”
Vista Outdoor is aiming to simplify its business model in an effort to increase efficiency as it marked a sales decline in the latest quarter.
The company's Outdoor Products business unit which contains the likes of Bell, Giro, Fox Racing, CamelBak, QuietKat and Blackburn saw a sales drop of 6% in the past quarter with a fall of 15% in organic sales. Currently, the unit is set to be built into a new publicly traded company called Revelyst.
New CEO of Revelyst, Eric Nyman said it will be starting a new "Gear Up" initiative that could include a focus on brands with the "highest potential" with company executives stating on a conference call that brands will less potential may be sold.
Another company seeing revenue success is Life Time as it recorded an increase across the first three quarters this year.
Life Time's "other revenue" which includes its athletic events saw an increase in revenue of 17% compared to the same first nine months of 2022. Over the initial three quarters of 2023, the revenue outside of its fitness clubs totalled $49.5 million or 3% of the company's total revenue of 1.66 billion.
The first three quarters of Shimano's fiscal year saw a fall in sales of bike products by 24.8%.
Shimano's latest report shows a tough year for the brand as its bike business' operating income was down by 48.8% compared to the same time last year. In the latest Q3 report, Shimano stated the cost of the worldwide inspection and replacement of Hollowtech cranks had already reached 17 billion yen, a total the company calls an extraordinary loss.
Shimano said: "Although the strong interest in bicycles cooled down, interest in bicycles continued to be high as a long-term trend.
"On the other hand, market inventories generally remained high, despite ongoing supply and demand adjustments."
Thule has seen a third-quarter sales rise of 8% year-over-year as it saw a boost in demand from Europe.
Overall net sales for the company rose from SEK 2,139 million last year to SEK 2,311 million in the same period this year. Net income saw a significant increase of 90.3% from SEK 137 million to SEK 262 million.
CEO and President Mattias Ankarberg said: "This growth should be considered within the context of bike retailers drastically reducing their orders in the year-earlier period in order to manage excessively high inventory levels."
As demand for helmets continues to be low Mips has observed a net sale decrease of 32% compared to last year. Q3 net income was marked at SEK 14 million down by 53% from the SEK 29 million achieved the same time last year.
Net sales for the brand also saw a drop as it totalled SEK 77 million for Q3 instead of the SEK 113 million reported in the same period last year.
President and CEO Max Strandwitz said: "When we analyze data from our major bike channels, we see that despite the impact of inventory corrections, we successfully continued to take market share and increase market penetration of helmet models with MIPS' safety system.
"We therefore remain confident about our long-term growth opportunities in the bike sub-category once the market starts to normalize."
Premium apparel brand Rapha has revealed a pre-tax loss of £12 million for the year up to January 29 this year.
Recent documents from the holding company Carpegna Limited, Rapah made a loss of £10.6 million after taxes a drop from the £10.5 million loss the year before. The 2023 filing makes it the sixth year in a row that the company has made a loss. Turnover also followed the downward trend as it went from £131 million the previous year to £118 million.
Rapha CEO Francois Concervey said in a statement shared with road.cc
: "Our financial results highlight the impact of a turbulent few years and the ongoing challenges faced by the business, and the cycling industry as a whole. Despite a negative profit year, through strategic decision making around reducing overhead costs, leadership changes and doubling down on our mission to 'inspire the world to live life by bike’, I’m confident in our ability to navigate the current economic climate and make the right decisions to see improved performance."