Shimano Component Sales Up 13.9% but warn of Cycle Boom Slowdown

Despite excellent, rising sales Shimano warn of things to come in their latest Fiscal Statement

The global cycling boom showed signs of cooling down, with market inventories of entry-class and middle-class bicycles approaching appropriate levels, while demand centering around high-end class bicycles remained high.

“In the European market, demand for bicycles and bicycle-related products remained firm as governments continued their policies to promote bicycles in response to growing environmental awareness. While demand for e-bikes remained strong, market inventories of entry-level and middle-class bicycles approached appropriate levels.

“In the North American market, demand for bicycles remained firm and market inventories, centering around entry-class and middle-class bicycles recovered to appropriate levels.

“In the Asian and South and Central American markets, the cycling boom cooled off, and market inventories of entry-class bicycles remained at a slightly higher level. In the Japanese market, while market inventories of road bikes remained at a low level due to steady demand for sport bikes, retail sales of community bicycles were sluggish, resulting in market inventories remaining at a higher level.

“Under these market conditions, order-taking was brisk for a wide range of products, including the high-end models for road bikes, Dura-Ace and Ultegra and sport E-Bike components, Shimano Steps series.”

Shimao also highlights good demand for Dura-Ace and Ultegra but gives no word on any raw material or stock shortages. Overall company forecast for the remainder of 2022 suggests lower growth levels than 13.9%.

Take out: Prepare for a rainy day