Following a subdued first quarter 2017, and on the back of a downturn in 2016, accessories and groupset specialist Shimano has released its first half 2017 results. Overall, Shimano’s group net sales have continued a downward trajectory. In first half of fiscal year 2017, group net sales decreased 2.07% year on year to ¥163.1 billion (US$1.5 billion).
Net sales from Shimano’s bike business segment decreased 2.7% year on year to ¥129.1 billion (US$1.2 billion), and operating income decreased 11.5% to ¥27.1 billion (US$242.3 million).
For its bike business, in Europe, Shimano noted that retail sales of completed bicycles were at the expected level for a typical first half, and distributor inventories of bicycles in Europe ‘remained at an appropriate level’. In North America, bike retail sales were approximately the same as the previous year’s level and distributor inventories remained somewhat low.
In China, a sharp growth in bike sharing hampered a recovery of retail sales of completed bicycles, which have been lacklustre since 2015. Although retail sales of low-end bicycles were particularly weak, distributor inventories were seen to be at an appropriate level.
For other emerging markets, retail sales in Southeast Asia and South America ‘continued to lack vigour and remained at the same level as the previous year’, but distributor inventories were at an appropriate level. In the Japanese market, retail sales of both sports bicycles and community bicycles were lacklustre, but distributor inventories remained at an appropriate level.
Shimano added that, in these market conditions, the Deore mountain bike components released in May 2017 and Ultegra road bike components released in June 2017 ‘were well received in the market’.