Q3 Revenue Round Up: Declining Consumer Interest, Stopping & Declining Sales

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Following the boom in the cycling industry over the past few years it seems like the industry is starting to slow down as demand falls along with revenue. Let’s dive into the details from the latest Q3 reports.

Shimano
Shimano’s third-quarter earnings report sees signs of consumer interest in bicycle cooling but demand remains higher than it was before the pandemic.

In its Q3 report, Shimano has revealed that the search for motorcycles remains low with high demand compared to bicycles that have seen a decline in interest. Shimano didn’t realize that in Europe though there is a shortage of products that are reaching a good level.

Shimano found in the first three quarters of the year sales of major components was 20.6% compared to the same period last year to 384,654 million yen (2.59 billion). Operating expenses of the company increased to 109,119 million yen, 21.6%. Sales for Q3 were up 25.7% over the same period last year.

Mips
MIPS said the decline in demand for bicycle helmets caused its third-quarter sales to drop 39% year over year.

Third-quarter sales reached SEK 113 million ($9.9 million), down from the SEK 185 million achieved in the same period last year. It’s not just about this quarter as MIPS President and CEO Max Strandwitz has said it could extend from 2022 into the new year.

“Cycle retailers around the world often get huge deals on bikes and bike accessories so helmet manufacturers are pulling the brakes on helmet production before next season.

“We believe that this small group (bicycles) will return to growth due to the strong performance of e-bikes, travel and people who want to spend more time outdoors. We still see great interest from our customers who want to introduce new products within the sector” ono bike. So, we are confident in continuing our investment in bikes.”

The results of the bottom of the third quarter were expected by MIPS as last month the company predicted a decrease in income with Max Strandwitz saying that this was because “we realized that we reduced the speed and size of the decline in the bicycle sector.”

Garmin
Garmin saw a 4% year-over-year decline in its latest report with the Fitness segment down 18%.

The decline in revenue is attributed to lower demand for home bikes and luxury goods with the latest quarter reporting a drop from $1.19 billion last year to $1.14 billion. The Fitness segment, which includes GPS devices, pedal power meters, indoor trainers and more, fell from $342 million to $280 million.

The currency was weakened by the strengthening of the US Dollar. Despite these challenges, gross margins were widened and operating margins remained tight. Looking ahead, we are reducing our earnings outlook for the remainder of the year in line with our current outlook, and are raising our EPS guidance on a positive margin outlook. We believe that our strong portfolio of new products and streamlined integration strategies will help us remain strong in this challenging economic environment.– Cliff Pemble, Garmin President and CEO

Be quiet
The Thule Group has seen sales decline by 23% year-on-year as inventory levels reduce demand for bike products.

Thule’s third quarter sales reached SEK 2.13 million ($196.3 million), falling from SEK 2.77 million last year although this was in line with the mid-quarter financial statement from CEO and President Magnus Welander.

Following the report, CEO and President Magnus Welander said: “In the coming quarters, as we have already explained, we will be facing a market with difficulties and great uncertainty about how the desire of consumers is affected in an uncertain world and sellers who try to reduce the number of products. “

Earlier this month Thule’s Americas division laid off 34 employees in management, product development, and manufacturing divisions.

We will continue to update this article as more reports are released.

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