The economic impact of the global pandemic is directly reflected in the Q1 financial reports of companies across various industries. Among brands involved in the bicycle business, some are experiencing joy while others face challenges, with Garmin, MIPS, Shimano, and Thule showing varying sales results.
Due to the pandemic in Europe and North America, many Thule retailers were closed or faced restrictions, leading to a 4.9% decline in sales for the Thule Group in Q1. As of March, Thule’s sales amounted to 1.744 billion Swedish Krona (approximately $176 million), down from 1.834 billion Swedish Krona (approximately $186 million) in the same period last year. After adjusting for currency fluctuations, the actual sales decreased by 7.5%.
In Q1 2020, Shimano’s bicycle division reported sales of 58.868 billion Japanese Yen ($552 million), a decrease of 15.4% compared to the same period last year, with operating income down by 26.1%. The net sales across all Shimano divisions fell by 12.3%, totaling 76.92 billion Japanese Yen. Due to factors such as foreign exchange gains, operating income decreased by 22.3%, while general income increased by 61.8%. The basic earnings per share were 212.12 Japanese Yen ($1.99).
The helmet technology company MIPS reported total sales of 56 million Swedish Krona (approximately $5.6 million) in Q1, with net sales increasing by 16% after adjusting for currency and acquisitions. Its operating profit grew by 38% to 16 million Swedish Krona (approximately $1.6 million). Adjusted operating profit increased by 43% to 17 million Swedish Krona (approximately $1.7 million). Diluted earnings per share rose by 24% to 0.47 Swedish Krona (approximately $0.048).
Garmin Ltd. reported a 12% year-over-year increase in total revenue for Q1 2020, with the fitness segment, including smart trainers, growing by 24%. For the period ending March 28, Garmin’s total revenue was $856 million, up from $766 million in Q1 of the previous year. Overall sales in the fitness, marine, outdoor, and aviation sectors increased by 17% compared to Q1 of last year.
Garmin’s acquisition of the cycling trainer brand Tacx has further contributed to the group’s profitability, with gross margin and operating margin rising by 14%. Coupled with advanced wearable devices (50%), these two segments saw an operating income increase of 71%.
Editor: HCY
Images: Archive
