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.
We will update this article as more financial reports are released.
Giant has revealed that its total first-quarter operating revenue has dropped from last year's total of NT$22.3 billion to NT$20.1 billion, a 9.6% decrease. Total profits from this quarter were also down, with a total of NT$883 million instead of the NT$1.91 billion achieved in the same period last year. Giant has responded to the data in its latest report by claiming the revenue decline is "due to the impact from European and North American markets to reducing inventories plus higher comparison base with last year."
The company has also stated that sales across Europe and the US were potentially affected by high inventory of entry and mid-level products. Electric bikes made up 32% of the brand's total sales in the past quarter with the company saying that these products will drive sales for the mid-level and higher products.
Merida has seen an increase in its operating revenue in Q1 with an increase from NT$8.2 billion to NT$8.4 billion, a rise of 2.8%. Although these were signs of positivity in its revenue figures the total profit for the quarter was down from NT$1.2 billion to NT$627.5 million.
After breaking records last year Leatt has reported a significant decline in revenue for its first quarter with a 46.1% decline compared to last year. Revenue figures for Q1 now sit at $13.1 million instead of the $24.2 million recorded in the same period last year. Net income has also seen a sizeable drop from $4.2 million to $1.02 million. Leatt did note direct-to-consumer sales from its own website have increased.
GoPro has seen a 19.4% decrease in revenue despite Nicholas Woodman, founder and CEO stating that the company exceeded expectations. In its first quarter report, GoPro found revenue fell from $217 million last year to $175 million in the period ending March 31. The brand has seen some success as subscribers have increased by 36% year-over-year with GoPro.Com
revenue (this includes subscription and service revenue) rose by 7% to total $95 million.
As part of its revenue report, the brand has also revealed that it will no longer be offering a discount for anyone becoming a GoPro subscriber. Anybody who is currently subscribed will still be able to purchase cameras in the future for a discounted price.
For its 2022 financial report, Orbea has revealed that it secured sales of 400 million euros with profit after tax increasing by 20% when compared to 2021. The brand has also allocated more than 20% of its profits to different social action and solidarity funds that it has established.
Fox Factory's bicycle brands (Fox Factory suspension, Marzocchi, Easton and RaceFace) saw sales drop by 30% in its opening financial quarter marking a second consecutive quarter decline when compared to the previous year. The previous quarter at the end of 2022 saw just a 1.9% drop in sales. Across the whole company revenue in Q1 was up by 5.8%.
Vista Outdoor has seen a big net sales increase of 23% to $496 million in its yearly reports, although the company states this was mostly down to the acquisition of Fox Racing last July.
Across the whole company, Garmin has reported it saw revenue decrease by 2% compared to the same period last year. There is some positivity as its Fitness segment (this includes bicycle GPS units, power meter pedals and trainers) saw an increase from $221 million last year to $245 million in the past quarter. Four of Garmin's five segments saw growth in the double digits with only the outdoor segment reporting a decline, this was a drop of 27%.
The Thule Group has announced in its Q1 report that net sales for the quarter have declined by 26.6%% year-over-year.
The Q1 reports details net sales at SEK 2,226 million a drop from the SEK 3,034 million last year. Year-over-year net income was lowered by 47.9% at SEK 275 million, this is down from SEK 527 million.
As demand for helmets continues to fall Mips has observed a net sale decrease of 35% compared to last year. Q1 net sales were marked at SEK 88 million ($8.5 million) a significant change from the SEK 137 million achieved at the same time last year.
Net income for the brand also saw a big drop as it totaled SEK 14 million for Q1 instead of the SEK 48 million reported in the same period last year.
While saying it is optimistic about the future of the bike market Shimano has found the current conditions to be unfavorable as it reports a 16.8% fall in its bike division net income alongside a 31.8% drop in operating income. Net sales in the bike division still totaled 98,298 million yen.