Q1 Reports Continue to Show Bike Boom Slowing for Garmin & MIPS; Shimano Stock Dips

Apr 29, 2022 at 13:32
by Alicia Leggett  
Garmin InReach

Following Tuesday's release of Shimano's Q1 financial report, the Japanese components company saw its stock price fall nearly 14%, likely because of the prediction that the bike boom may be losing momentum.

Shimano reported a 13.9% increase in 2022 Q1 net sales compared to 2021, falling short of expectations after two years of rapid growth. The same Q1 report in 2021 saw a 64.4% net sales increase over 2020.

While Shimano is still clearly - if more slowly - growing, Garmin reported a 28% decrease in revenue from its Fitness division, which includes cycling products such as GPS units, power meter pedals, and Tacx stationary trainers. The report also showed a 99% decrease in Fitness segment operating income, which the company attributes to a highly successful (and therefore difficult to match) 2021. Still, Garmin managed to bring in record Q1 net sales of $1.17 billion across all its divisions, a 9% increase compared to 2021. Its operating income was $229 million, an 8% decrease year-over-year. The growth was driven not by anything necessarily related to cycling, but largely by its Outdoor division, which saw a 50% increase in revenue and includes its GPS smartwatches and tracking devices. Garmin's Aviation, Marine, and Auto segments remained somewhat stable.

MIPS reported a similar pattern, still growing but unable to match its 2021 bike division sales. The Swedish helmet technology company reported a 48% organic growth, adjusted for changes in exchange rates (before the currency adjustment, the net sales growth is up at 65%). The company did not release the specific sport-by-sport breakdown of the numbers, but said the current growth is driven primarily by snow segment sales, even as the bike division continues to grow. In comparison, bike sales led the company's 2021 Q1 growth, thanks to high demand during the bike boom.

Companies that relied on bike division sales to boost their performance over the last two years can no longer do so.

While we certainly can't predict the future, it seems these reports all point to the bike industry beginning to restabilize after two years of soaring demand and resulting supply chain issues. Does that mean bike and component prices will ease back down a bit? We can only hope.


88 Comments

  • 100 1
 From someone who is in the industry:

This is fine. 2020 and 2021 were absolute outlier years and were not sustainable. Let's take some lessons from it, learn about supply chain constraints, and move forward. The industry is still growing, and if anything, it is now growing at a more sustainable rate.
  • 7 25
flag RonSauce (Apr 29, 2022 at 15:05) (Below Threshold)
 Tell that to shimano's stock prices.
  • 14 0
 @RonSauce: The markets are fickle. Some investors short term financial returns have taken a hit, so the stock tanks. Meanwhile bikes continue to be designed, manufactured, sold and ridden. The industry will still be here in 5 years, and will be larger than it is now.
  • 8 4
 @superkeen: then it sounds like its time to buy the dip.
  • 7 1
 Proxy WW3 has entered the chat.
  • 37 2
 The next boom in the bike industry is the sale of used or like new barely used mountain bikes and mountain bike equipment.
  • 8 0
 @RonSauce: The stock price that increased a f*ck tonne and then decreased slightly? They must be raging
  • 2 5
 @Bobadeebob: its a sign that the people who actually invested money feel that its time for a market correction. 16% is more than a slight drop.
  • 6 0
 Yeah.....because that's how modern capitalism operates! All the new money that jumped on board as they saw revenues skyrocket will be screaming at companies to increase prices to protect their investments in the face of growing interest rates on their borrowing.
  • 1 0
 @RonSauce: Time to buy
  • 1 4
 @tolemtb: then buy. Get off the amateur trading advice and put your money where your mouth is. Tell me to buy when you buy.
  • 3 0
 @RonSauce: you literally said the same thing like 8 comments above. Why are you giving him $hit?
  • 1 3
 @ScreamingKnees: and I just literally said the same thing again, whats your point? If you think shimano is going to be on a never ending climb....
Step 1:buy stock
Step 2:profit
  • 2 1
 Let’s hope this means in the long term that less lockdown riders are standing on the lip of that ‘big’ gap or pushing back up the dh trails
  • 1 0
 @RonSauce: Personally, I would not expect Shimano or Garmin stock prices to be bouncing unless there is another pandemic that shutdowns all other kinds of entertainment. I could be wrong. Just my couch surfing stock opinion.
  • 1 0
 @tacklingdummy: why do you think so?
  • 3 0
 @Asmarciux: I just think that the pandemic lockdowns brought a ton of people into the sport that would not have otherwise entered because all other forms of entertainment was closed (restaurants, movies, shopping, hanging with friends, etc.). People had nowhere else to go, but to partake in outside activities.

Now that the pandemic is waning, people are going back to doing the activities they did before and many with less leisure time going back to offices. Some will keep riding, but a lot may leave the sport as they find it wasn't for them. So, the demand for Shimano and Garmin products may not get back to pandemic sales levels. I'm sure the companies will grow, but not like the big bounces we saw during the pandemic.

Again, just my couch surfing stock opinions.
  • 23 4
 It will be interesting to see how bike companies respond. I understand costs have gone up, but it is pretty insane to see $6,500 GX builds from some boutique bike companies. The price increases 100% have me shopping for transition, canyon, yt for my next bike.
  • 63 2
 Ride what you have.
  • 10 3
 Transition GX spire is 6k too... but yeah. GX should be a 4K build
  • 8 2
 @redmountaingoat: the spire also comes with a zeb ultimate fork and a ultimate shock. I’m speaking to $6.5k gx builds with Fox performance level suspension.
  • 2 1
 Would a Transition, Canyon or YT not be on your wish list otherwise? I have owned bikes from all three brands in the past ten years, chosen because I saw them as superior products to their competitions (which naturally included the fact that they came with top shelf components at a very attractive price).
  • 4 0
 @mi-bike: Agree. Prices will continue to be high as long as people continue to pay high prices.
  • 3 0
 @redmountaingoat: Yeah, Transition Sentinel frame is $3399. $3399 is the price Santa Cruz frames were a few months ago. Now, the Santa Cruz Megatower frame is $4,249. Whoa, prices have skyrocketed.
  • 1 0
 @redmountaingoat: to add to @HB208's comment - that $6k gets you a carbon frame. The same bike in an alloy frame is just under $5k, so its in the upper end of the $4k range you mentioned. Pretty solid spec for a solid price point IMO - but I am biased as I am waiting for my carbon GX build spire to ship.
  • 1 0
 @Nygaard: Considering I own a Transition mountain bike and a Canyon road bike, yes.
  • 23 4
 I'm glad that the market is slowing down. I'm not sure how it can sustain the stupid ridiculous prices that companies comes out with for bikes, components, and fashion. It's like biking has gone the way of downhill skiing - it's become a fashion where only the rich can enjoy.
  • 10 18
flag yakimonti (Apr 29, 2022 at 18:44) (Below Threshold)
 right....are you being this big of a whiner to the food industry, lumber, rental cars, gas, water, or any number of things that have gone up in price.
  • 6 1
 I snowboard at least 60+ days every winter, if you buy a pass and keep your gear in good shape it's cheaper than mountain biking. There are plenty of ways to be a bum.
  • 1 1
 @GBeard: both are good sports in that there are a minimum number of consumables involved. Compare that with something like paintball, where your big expense is not the clothing and equipment, but the paint. Imagine shooting dimes every time you pull the trigger, and you can practically feel your wallet and bank account draining like a flushing toilet.
  • 2 1
 Comparing the trail & woods I ride to pre, during and post covid pandemic the amount of people riders I see is back to normal I would say. Most people that started riding in civic times are back to the gyms/pubs/general life that they had before. That spare money from not commuting or paying subscription fees or holidays went into the bike industry isn’t there anymore. The biggest thing is why didn’t these people stick around? More than likely going back to work stopped the free time but there has to be other reasons (the supply train time scales probably didn’t help).
  • 2 0
 @MB3: At least it is only dimes vs real ammunition. I am afraid of going to the range anymore
  • 1 0
 @yakimonti: I don't have rich parents to leech off of and I haven't lived under the same roof as my parents for 30+ years. I also don't work for some big ass O&G company either. So, I do have a right to bitch about companies gouging consumers and blame it on supply chain issues, especially when boutique brands market their shit as made in Canada or USofA.
  • 2 0
 @JSTootell: testify brother, it's like lighting 5$ bills on fire if you shoot any centerfire rifle, even reloading for matches is getting dumb
  • 14 1
 Maybe they aren't growing (or sales are down) because they haven't made any new products that they can sell?
When suppliers are still forecasting no inventory for the next 12-24 months of course there won't be any growth.
  • 1 0
 This is what I think is the issue! On the road side of things, Shimano's new 12spd group sets were announced in august. Ive seen exactly 1 in the flesh, 8 months later
  • 6 0
 @chawski: I still can’t get a f*cking Xbox.
  • 3 0
 @waxman, this 100%.

My company has an enormous amount of bookings that we cant fill because humanity cannot make more microchips. Our orders are non-cancelable, so EVENTUALLY, we'll fill all those bookings. And we're still getting dinged by Wall Street.

I didn't look very hard but if Shimano has strong bookings, this could be a decent dip to buy. But if their bookings are fading, could mean overall demand for cycling is going down.
  • 14 0
 Return to office seems to have reduced people’s leisure time and budgets. Interesting how that worked out.
  • 7 0
 This picture got me thinking: does anyone frequently ride with an inReach or anything like that? I didn't know about these until I started looking into ski touring and it's never really occurred to me to bring one along riding. That said, almost everywhere I frequently ride has service. You guys?
  • 2 40
flag stainerdome (Apr 29, 2022 at 21:12) (Below Threshold)
 How do you say you guys gender neutral??!
  • 10 1
 I bring it pretty frequently on big backcountry rides and peak bagging trips with no service. Makes my wife feel better, makes me feel better and is a cheap insurance policy if me or someone I’m with gets hurt.
  • 2 19
flag stainerdome (Apr 29, 2022 at 21:49) (Below Threshold)
 You humans….
  • 1 0
 So I have a Garmin Instinct that has a feature where you can stamp the GPS location of the trail head so if at anytime your lost you can follow the GPS back to the start. I use this for any trails I do not know. I'm not in out of service locations of then though due to the fact most mountains where I live have a TV/cell tower on the peak. Ah, nature!
  • 3 0
 I use it for rides and rock climbing during the summer and ski touring during the winter. I also am in Idaho and frequently don’t have good cell reception even in town.
  • 4 0
 I ride, ski with a Garmin InReach all the time as I’m regularly in places w spotty or no cell coverage. Essential gear for me.
  • 2 1
 Just get one. Better safe than sorry. I always take mine where service is spotty
  • 2 0
 I do a lot of long solo rides with no coverage and have one. I take it with pretty religiously in the winter, occasionally forget to take it in the summer. I feel much better when I have it along, it really doesn’t take much to leave you stranded, miles from help. A bad bonk can be enough to kill you when it’s 10 below zero F.
  • 2 0
 Get a zoleo, same iridium network, has its own dedicated number rather than one that changes all the time and works with cell, wifi and satellite. Oh and half the price, inreach is great but some of the features that were once great are now available for free on apps like Gaia, ski tracks etc. so your just paying more to buy and use. And yes anyone out of cell coverage should have one...or you will wish you did when one day the shit hits the fan.
  • 2 0
 I take a plb anytime I’m going somewhere without great mobile coverage, or few people, which is fairly frequently as a farmer, outdoor sports enthusiast, and working for an aerospace company. One is always in each of our family cars too.
  • 1 0
 I carry an inReach mini anytime I am going out of cell range, or I just want a backup plan. There are other alternatives, but worth it to me.
  • 4 0
 how the heck are they supposed to grow, when they are not selling anything, as nearly nothing of interest ist available on this stupid market??? (mainly talking about bikes, for clarification...)
  • 5 0
 Bike shop owner here & the job is f#cked at the minute & can't see it getting better any time soon !!
  • 3 0
 Every bike shop local to me has big “Help Wanted” signs at the front door. Partly because business is booming (held back only by supply issues), but perhaps partly because the cost of living / rent in big cities is getting way out of hand, and bike shop wages (like all shops) aren’t matching them.
  • 1 13
flag nismo325 (Apr 30, 2022 at 14:14) (Below Threshold)
 @MB3: Also most young kids that would be working at shops have been getting checks from the government the last couple years so why work when you make as much sitting at home lol and inflation has made it impossible for little shops to pay people enough to keep up with living costs.
  • 5 1
 Whod've thunk an obvious bubble would being to burst. Good. Hope it means prices start to come down as demand reduces.
  • 2 1
 a recession 8-12 months away, shops that have over bought and already can't keep up with payments, more delays in Asia based production due to covid will mean that this "slow down" will come to a screeching halt much sooner than anticipated.
sadly there will be many many IBD's as casualties, expect 5-10% of bike shops to fail in the coming 24months
  • 3 1
 One of the primary factors will be what happens in Ukraine. If Germany gets cut off from oil and goes into recession prices could get much worse.
  • 1 0
 With peoples pocketbooks getting squeezed with price inflation I can only imagine the cycling industry just experienced one last hurrah. We can't print and lockdown our way to prosperity. Thankfully the big banks and mega corporations have had a banner few years.
  • 1 0
 Anyone tried to buy a bike lately? Waiting times are long. Part of that is Covid/lockdown related supply bottlenecks and recent shipping tightness (which is a reason for some of the margin deterioration in the results in this article). If you can’t build a bike you can’t sell one and you can’t sell the components that go on the bikes either. It also means less need for peripheral devices like garmins or helmets/clothes etc.

There is always a base effect and businesses go in cycles but before we conclude it’s the end for bicycle growth we also have to consider whether it’s demand or supply that is the constraint right now. I suspect it’s a bit if both but that given what we know of manufacturing bottlenecks in places like china and Malaysia the demand picture is likely not as bad as the data suggests.
  • 3 0
 We all have our toilet paper and brake pads stocked up for the next couple years lol
  • 2 0
 I can understand garmin, because they are behind on their model years for bike minded computers, by their own tactics. Also Wahoo has taken a big bite of their market share.
  • 78 80
 taking the first comment to highlight some complete bullshit


dearest Beta overlords/PB cucks: that Rebecca Rusch/concussion story is far too important to hide behind a f*cking paywall. literally. you are clearly using fear to goad people into paying for your shit service.

Look.....put all the "here is why a $900 handle bar is the bestestest!" article you want over there. But an article on how people CAN SAVE THIER f*ckING LIVES?......disgusting. you should all be ashamed. all. of. you.
  • 18 27
flag mi-bike (Apr 29, 2022 at 14:48) (Below Threshold)
 I find this a gratuitous and, frankly, quite ridiculous take. First of all, 99% of Pinkbike readers do not ride in the backcountry where they would not be found by fellow trail users after getting hurt. Few people would be goaded, as you say, into subscribing "out of fear". Secondly, you call it a shit service. But how would you know if you're looking in from the outside? I dislike the Outside features as much as the next non-subscriber, but imo PB and Beta corporate overlords have nothing to be specifically ashamed about in this case.
  • 7 5
 @mi-bike: where do you ride your mountain bike if not in the backcountry? Lol , what?
  • 26 4
 This comment is laughable.

It took me 2 seconds to Google "Rebecca Rusch Concussion" and another couple seconds to find a free, published news story about her unfortunate situation: 6park.news/arizona/rebecca-rusch-the-importance-of-self-reliance-in-the-field.html

Sheesh. I understand you have an opinion about something, but it doesn't make it right or justifiable lol.
  • 11 2
 Shhhhhh... Try eating a snack or going for a ride. You'll feel better.
  • 3 2
 @plustiresaintdead: Would you recommend eating a Snickers, or riding a trail called Snickers?

www.trailforks.com/search/?search=snickers
  • 1 0
 I love the Q reports! Very Outsidey but inside a cubicle at the same time. So interesting.
  • 1 0
 @SpecSRAM: Red Bull gives you wiiings so you can fly higher and happier!
  • 4 1
 @CSharp: Isn't that what weed is for?
  • 2 5
 @SpecSRAM: LOL, I don't do that shit Big Grin
  • 14 2
 They don’t owe you a free story to help keep you safe, just like Garmin doesn’t owe you a free InReach to keep you safe, or Giro owe you a free helmet to keep you safe.
  • 4 2
 eeeeasy Karen.
  • 3 0
 You must be joking. Something is "important" (it's not) therefore it should be free? There are literally dozens of stories like it, and plenty of advice around being safe outdoors. Get a grip.
  • 3 1
 @neroleeloo: lol what? literally every trail I ride is within city limits, you live in maple syrup land where you have backcountry everywhere. Don’t get me wrong I ride backcountry but that involves a drive and camping.
  • 1 0
 @CSharp: Oh the irony.
  • 1 0
 @UtahBrent: Condoms and syringes are still free
  • 1 0
 Conoat just sounds jealous that he can’t afford the subscription. Poor guy Frown
  • 4 1
 You can use Google if you want to read her news articles. But you won't so instead you complain and think it's justified. Can we stamp your username with a douchebag trophy?
  • 1 0
 Trek top fuel gx before covid. $7200 cad. Now its $9050!

A gx santa cruz blurr tr gx is $7600. what the f*ck is trek doing?
  • 1 0
 Get prepared for local bicycle shops to resume their closure.
  • 3 3
 I'd buy more Garmin stuff if I had a discount on it through IMBA.
  • 3 0
 Is anyone getting pro deals on garmin these days? They all seem to be gone.
  • 1 0
 @noplacelikeloam: pro deals in general gone. Especially for bikes.
  • 1 0
 Propain hugene
  • 1 0
 Of course not! And don't call me Eugene.





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