[Updated] Revenue Round Up: Shimano Breaks Sales Records & More from Q4 Reports
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 Q4 revenue reports.
Fox
Fox has also seen big increases as Q4 saw rises of 19.4% as sales reached $408.6 million from the $342.3 million achieved at the same time last year.
Although Fox saw a big sales increase, this was mostly thanks to the Powered Vehicles Group sales as it saw a huge 38.5% increase in Q4. The Specialty Sports Group sales that includes the brand's bicycle products saw a 1.9% decrease of sale in Q4. Fox does not seem worried about this as it states the drop was "driven by return to seasonality."
The overall results for the year saw sale increase by 23.4% as it rose from $1,299.1 million in the 2021 fiscal year to $1,602.5 million. Sales in the Specialty Sports Group rose by 17.6% over the past 12 months compared to the previous fiscal year period.
Garmin
Garmin has reported a 6% year-over-year decrease in revenue in its recent Q4 report.
The company also noted a 2% drop in revenue for 2022 as its fitness products division suffered the largest decline of all of Garmin's divisions. The fitness products division noted a 28% year-over-year decline for the quarter with revenue dropping from $470 million to $337 million. Across the past year revenue in the fitness products division dropped from $1.53 billion to $1.10 billion.
While net income was down 9% for the year the Q4 results saw a year-over-year increase of 2%.
Shimano
Shimano's bicycle division is bucking trends as it breaks more records as sales reach 517.4 million yen ($3.885 billion), a 16.6% from the previous year.
The company said: “Although the strong interest in bicycles during the COVID-19 pandemic showed signs of cooling down, demand for bicycles remained above the pre-COVID-19 levels. In terms of market inventories of completed bicycles, those of high-end class bicycles remained at a low level. Meanwhile, inventory levels of middle-class bicycles rose, following those of entry-class bicycles."
While sales are up growth has slowed from the boom of 2021 where the division saw an increase of 44% from the previous year. Operating income for the bike division of Shimano is also up from the previous year at 144,994 million yen.
Shimano has stated that North American market inventories “remained higher than appropriate levels due to the supply adjustment of completed bicycles.”
Thule
The Thule Group has announced in its Q4 report that net sales for the quarter have declined by 10.6% year-over-year.
CEO of the Thule Group Magnus Welander is blaming recent performances on reduced demand for bike products from retailers who lowered inventory following large preseason orders.
The Q4 reports details net sales at SEK 1,651 million ($157.9 million) a drop from the SEK 1,846 million last year. Overall net sales were lowered by 2.4% at SEK 10,138 million, this is down from SEK 10,386 million. 41% of sales over the past year were from bike products.
Magnus Welander said: "It is worth noting that the pandemic year of 2021 was an exceptionally strong year in the bike industry in general, and that we also captured market shares in 2021 as a result of our competitors having more significant issues with meeting the demand increase."
Mips
Mips has observed a 50% drop in helmet sales leading to Mips' net sales falling by 46% year-over-year.
Net sales for Q4 reached SEK 107 million, a significant drop from the SEK 198 million reported this time last year. Across the full year, net sales were down to SEK 563 million, instead of the SEK 608 million reported for the previous year.
Max Strandwitz, the CEO, said: "The fourth quarter closes a different, challenging but also successful year.
"A drastic slowdown in the bike sector in the second half of the year had a substantial negative impact on sales in Sport, our largest category. While we had to deal with the short-term challenging market for our largest category, we have taken big steps for the future through several initiatives and successes within other categories. We have also continued to strengthen our brand position, product portfolio and organization."
GoPro
GoPro has reported a drop in revenue in Q4 of 18% year-over-year.
In its latest earnings report, GoPro has revealed that in the quarter ending Dec 31 the company saw revenue hit $321 million, the same quarter last year surpassed this at $391 million. For the year as a whole revenue reached $1.09 billion a drop from the 2021 total of $1.16 billion. Net income dropped significantly by 94% year-over-year to $3 million compared to $52.6 million previously.
GoPro's chief financial officer, Brian McGee, said: "GoPro ended the year with solid balance sheet metrics and $367 million in cash after repaying debt of $125 million and repurchasing $40 million in stock."
We will update this article as more Q4 reports are released.
Fox
Fox has also seen big increases as Q4 saw rises of 19.4% as sales reached $408.6 million from the $342.3 million achieved at the same time last year.
Although Fox saw a big sales increase, this was mostly thanks to the Powered Vehicles Group sales as it saw a huge 38.5% increase in Q4. The Specialty Sports Group sales that includes the brand's bicycle products saw a 1.9% decrease of sale in Q4. Fox does not seem worried about this as it states the drop was "driven by return to seasonality."
 | As we enter 2023, we are aware that the global economy will continue to experience some challenges under the weight of inflationary pressures and tightening monetary conditions. As we navigate these challenges we will continue to fine-tune our product lines, while exploring investments to ensure our future success. Our achievements in 2022 provide us with confidence in our ability to execute our tactical objectives as well as deliver on our long term strategic vision. |
The overall results for the year saw sale increase by 23.4% as it rose from $1,299.1 million in the 2021 fiscal year to $1,602.5 million. Sales in the Specialty Sports Group rose by 17.6% over the past 12 months compared to the previous fiscal year period.
Garmin
Garmin has reported a 6% year-over-year decrease in revenue in its recent Q4 report.
The company also noted a 2% drop in revenue for 2022 as its fitness products division suffered the largest decline of all of Garmin's divisions. The fitness products division noted a 28% year-over-year decline for the quarter with revenue dropping from $470 million to $337 million. Across the past year revenue in the fitness products division dropped from $1.53 billion to $1.10 billion.
| Our performance in 2022 was solid even as we faced increasing headwinds affecting the business environment and consumer behaviors. We are entering 2023 with a strong product lineup, and many more product launches are planned throughout the year. I am very proud of what we accomplished in 2022 and look forward to the opportunities and challenges ahead. |
While net income was down 9% for the year the Q4 results saw a year-over-year increase of 2%.
Shimano
Shimano's bicycle division is bucking trends as it breaks more records as sales reach 517.4 million yen ($3.885 billion), a 16.6% from the previous year.
The company said: “Although the strong interest in bicycles during the COVID-19 pandemic showed signs of cooling down, demand for bicycles remained above the pre-COVID-19 levels. In terms of market inventories of completed bicycles, those of high-end class bicycles remained at a low level. Meanwhile, inventory levels of middle-class bicycles rose, following those of entry-class bicycles."
While sales are up growth has slowed from the boom of 2021 where the division saw an increase of 44% from the previous year. Operating income for the bike division of Shimano is also up from the previous year at 144,994 million yen.
Shimano has stated that North American market inventories “remained higher than appropriate levels due to the supply adjustment of completed bicycles.”
Thule
The Thule Group has announced in its Q4 report that net sales for the quarter have declined by 10.6% year-over-year.
CEO of the Thule Group Magnus Welander is blaming recent performances on reduced demand for bike products from retailers who lowered inventory following large preseason orders.
The Q4 reports details net sales at SEK 1,651 million ($157.9 million) a drop from the SEK 1,846 million last year. Overall net sales were lowered by 2.4% at SEK 10,138 million, this is down from SEK 10,386 million. 41% of sales over the past year were from bike products.
Magnus Welander said: "It is worth noting that the pandemic year of 2021 was an exceptionally strong year in the bike industry in general, and that we also captured market shares in 2021 as a result of our competitors having more significant issues with meeting the demand increase."
Mips
Mips has observed a 50% drop in helmet sales leading to Mips' net sales falling by 46% year-over-year.
Net sales for Q4 reached SEK 107 million, a significant drop from the SEK 198 million reported this time last year. Across the full year, net sales were down to SEK 563 million, instead of the SEK 608 million reported for the previous year.
Max Strandwitz, the CEO, said: "The fourth quarter closes a different, challenging but also successful year.
"A drastic slowdown in the bike sector in the second half of the year had a substantial negative impact on sales in Sport, our largest category. While we had to deal with the short-term challenging market for our largest category, we have taken big steps for the future through several initiatives and successes within other categories. We have also continued to strengthen our brand position, product portfolio and organization."
GoPro
GoPro has reported a drop in revenue in Q4 of 18% year-over-year.
In its latest earnings report, GoPro has revealed that in the quarter ending Dec 31 the company saw revenue hit $321 million, the same quarter last year surpassed this at $391 million. For the year as a whole revenue reached $1.09 billion a drop from the 2021 total of $1.16 billion. Net income dropped significantly by 94% year-over-year to $3 million compared to $52.6 million previously.
GoPro's chief financial officer, Brian McGee, said: "GoPro ended the year with solid balance sheet metrics and $367 million in cash after repaying debt of $125 million and repurchasing $40 million in stock."
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152 Comments
Shimano are still subject to the same market effects as everyone else, just one step removed.
They have seen huge uptake from new riders to the sport as well as others upgrading (not travelling to work, being furloughed and minimal output financially and loads of time on their hands) to ride 5 days a week.
Covid ceased to exist once there was a different global potential apocalypse for the media to jump in on and the world went back to normal.
The industry assumed that that new yearly unit sales statistic was the new normal and -boom! The near global recession is on us after countries paid for everything and earned nothing in taxes in return.
This here is the final completion of the back orders from brands to component companies for what would be the perceived new norm’. Brands will be scaling back as they’ve so much surplus units that they can’t shift (hence all the 30-40% off bikes in the shops already!).
Nah tho, I save my carb allowance for beer.
It’s all he’s had the whole time…
A penny!
Not sure where that figure comes from, likely the Bicycle component from these financial statements:
www.shimano.com/en/ir/library/cms/contents/Summary%20of%20Financial%20Results%20FY2022-Q4.pdf
PSA: don't get your financial news from a biking website.
1/100 dollars (ish) yes.
1/100 penny? No.
So should I have said 7/100ths of a penny then?
Could you imagine if everything was marketed here in pennies? New bikes are 900,000 pennies? That car is 0% for 72 months at 5,400,000 pennies with 25,000 pennies factory cash?
SAME HERE... Needed to prove that it was chipmunks, not rats living under the garden shed or the wife would make be tear the whole thing down. I said it was chipmunks!
Canadians call it Groundhog, eh?
If you want the discount bike, get it - once the discount stuff is sold it’s back to post covid RRP.
We'll see though. They're all making enough that I don't think the big brands are going anywhere any time soon, although I suspect things may be a little uncomfortable for them at the moment.
If you want waking up when a base Capra is less than 2k you will sleep eternally.
We'll see what the consumer does but most are just keeping their 2+ year old bikes and waiting to see how this recession develops.
I drank some very good beer,
I drank some very good beer
I purchased with a fake ID.
My name was Brian McGee,
I stayed up listenin' to Queen
When I was seventeen.
Look what's happened to Brian now eh?
www.pinkbike.com/news/shimano-invests-300m-in-japan-and-singapore-facilities-to-increase-capacity.html
"Shimano's president, Taizo Shimano, told it that the company is building a facility in the Jurong Innovation District on the west side of Singapore, where an existing plant is also located. The new plant will produce high-end drivetrain parts, the site reports, and is being positioned as a "factory of the future." It was supposed to open last year but was delayed due to COVID."
Read that last sentence very closely. It was on the BRAIN article last year.
"Shimano is also investing another $118 million (13 billion yen) in its two Japanese factories in Osaka and Yamaguchi. These investments will go towards new machinery and software that will reportedly allow it to increase capacity by 1.5 times by the end of the year compared to 2019."
Oops.
www.bicycleretailer.com/industry-news/2023/02/17/shimano-forecasts-21-sales-drop-2023#.Y_RiVOzMKrM
Not bad for snake oil.
But also this.... www.bicycleretailer.com/industry-news/2023/02/17/shimano-forecasts-21-sales-drop-2023#.Y_TI93bMJD8
Sincerely,
Big Bike Industry
As well, bike components up but roof racks down... makes me wonder if that means more commuters an delivery riders but less high level cycling be it road or MTB....
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