OSAKA, Japan (BRAIN) — Sales in Shimano's bike division were down 0.7% in in the first quarter, but operating earnings in the business unit plummeted 46% in the quarter.
Sales of bike products in the quarter were 87.4 billion yen ($545.2 million) while operating income was 7.8 billion yen in that business.
The decline in operating income was partly due to a one-time 2.5 billion yen inventory valuation in the first quarter of 2025, the impact of foreign exchange rates, and an increase in SG&A (Selling, General, and Administrative) costs.
“(I)n the European market, retail sales of completed bicycles were somewhat weak with the onset of the winter off-peak season, and market inventories remained at a somewhat high level,” Shimano said.
“In the North American market, while retail sales of completed bicycles remained weak due to an uncertain economic outlook, market inventories remained at an appropriate level,” the company said, noting that complete bikes sales “remained weak” in the Asian and Central and South American markets, while retail sales “stagnated” in China, where market inventories remained high.
Commenting on its business across all its divisions, Shimano said, “In the U.S., the previously strong economy came to a standstill amid lackluster personal consumption due to price increases resulting from tariff policies, despite signs of recovery in the employment environment.”
Sales in Shimano’s other major market, fishing, were up 18.5% in the quarter and operating income in fishing was up 58.6%.
Forecast
Shimano adjusted its forecast for the rest of its fiscal year, to revise its net income forecast up 9.1% in the first half and reduce its ordinary income forecast by 4.8% for the full year. It said it did not factor in the impact of fuel cost increases and other disruptions due to the war in Iran. The full-year forecast includes a decrease in sales of bike products of 2 billion yen from 2025.
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Chart courtesy of Shimano -
Chart courtesy of Shimano
