Industry Digest: Porsche eBike Motors, Bombardier Buys Pinion, Rise in Revenues & More
What's going on in the cycling industry this month? Industry Digest is a peek behind the curtain and showcases articles from our sister site, Bicycle Retailer and Industry News. In each installment, you might find patents, mergers, financial reports and industry gossip.
Leatt Corporation second-quarter revenue increased 25% year-over-year, the 17th consecutive quarter of growth.
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Wahoo announced Tuesday the formation of a proprietary Sports Science facility in Boulder, Colorado, that will be led by coaches, sports scientists, and specialists. The fitness technology company's aim is to become the "global leader in smart fitness and training."
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Canada's Bombardier Recreational Products has taken a majority share in Pinion GmbH, the German maker of gearbox drivetrains for bikes and e-bikes.
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Revenues in Fox Factory’s bicycle-related businesses were up 35% in the first half of the year compared with the same period last year. Sales in the division, which includes business under the Fox suspension, Easton, RaceFace and Marzocchi brands, totaled $348 million.
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Giant Group announced its first half consolidated sales were NT$45.01 billion ($1.5 billion ), a 7.2% increase over the first half last year.
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GoPro Inc. second-quarter revenue grew slightly year-over-year, while the sport camera brand reported a 65% jump in subscribers during the period.
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Porsche announced it will develop an e-bike drive system in the next few years, collaborating with Pon Holdings' Ponooc Investment B.V.
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Days after an announcement that the North American Handmade Bicycle Show is postponed for this year, a variety of framebuilders and other industry sponsors say they are committed to a new show to be held in Portland in September next year.
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(Read more.)
Leatt Q2 revenues rise 25%, continuing year-over-year growth trend
By: Bicycle Retailer and Industry NewsLeatt Corporation second-quarter revenue increased 25% year-over-year, the 17th consecutive quarter of growth.
Revenue for the quarter ending June 30 was $17.9 million, compared with $14.3 million at the same time last year. Net income for the protective gear brand went up year-over-year 13% to $2.72 million from $2.4 million in 2021. Earnings per share went up slightly, from $0.44 to $0.47.
Apparel, helmet, and off-road motorcycle boot sales were the leading drivers of the second-quarter growth, said Chief Executive Officer Sean Macdonald.
"We continue to build out a global team of sales and brand managers who are focused on specific regional market dynamics and support for our distribution partners and dealer networks."
Apparel, helmet, and off-road motorcycle boot sales were the leading drivers of the second-quarter growth, said Chief Executive Officer Sean Macdonald.
"We continue to build out a global team of sales and brand managers who are focused on specific regional market dynamics and support for our distribution partners and dealer networks."
(Read more.)
Wahoo opens Sports Science facility in Colorado
By: Bicycle Retailer and Industry NewsWahoo announced Tuesday the formation of a proprietary Sports Science facility in Boulder, Colorado, that will be led by coaches, sports scientists, and specialists. The fitness technology company's aim is to become the "global leader in smart fitness and training."
The team is led by Wahoo's head of sports science, Neal Henderson. Other members include Dr. Ginger Gottschall, director of applied research; Mac Cassin, senior sports scientist; Rupert Harold, operations manager; and Jeff Hoobler, strength and movement specialist.
"I'm thrilled to be leading the Wahoo Sports Science team as we grow and expand the applications of sport science within Wahoo hardware and software ecosystem."
"I'm thrilled to be leading the Wahoo Sports Science team as we grow and expand the applications of sport science within Wahoo hardware and software ecosystem."
(Read more.)
Canada's Bombardier is new owner of gearbox maker Pinion
By: Bicycle Retailer and Industry NewsCanada's Bombardier Recreational Products has taken a majority share in Pinion GmbH, the German maker of gearbox drivetrains for bikes and e-bikes.
BRP is the owner of Ski-Doo and Sea-Doo, among other brands, including Rotax and Great Wall Motor Austria powertrain systems.
"Beyond our existing powersports and marine products, we are expanding our addressable market and entering untapped categories such as urban mobility and services," said José Boisjoli, the president and CEO of BRP.
"Beyond our existing powersports and marine products, we are expanding our addressable market and entering untapped categories such as urban mobility and services," said José Boisjoli, the president and CEO of BRP.
(Read more.)
Fox Factory bike-related sales up 35% for the half year
By: Bicycle Retailer and Industry NewsRevenues in Fox Factory’s bicycle-related businesses were up 35% in the first half of the year compared with the same period last year. Sales in the division, which includes business under the Fox suspension, Easton, RaceFace and Marzocchi brands, totaled $348 million.
Sales in Fox’s powered vehicle division were up 24% in the first half, to $437 million.
Fox hit company record numbers for quarterly income, EBITA and earnings per share in the first half. Second-quarter revenues company-wide were $406.7 million, the first time Fox has recorded quarterly sales above $400 million.
Fox forecast third quarter sales of $385 million to $405 million and non-GAAP adjusted earnings per diluted share in the range of $1.15 to $1.35.
Fox hit company record numbers for quarterly income, EBITA and earnings per share in the first half. Second-quarter revenues company-wide were $406.7 million, the first time Fox has recorded quarterly sales above $400 million.
Fox forecast third quarter sales of $385 million to $405 million and non-GAAP adjusted earnings per diluted share in the range of $1.15 to $1.35.
(Read more.)
Giant Group first-half sales up 7.2%; Performance-level inventory still a challenge
By: Bicycle Retailer and Industry NewsGiant Group announced its first half consolidated sales were NT$45.01 billion ($1.5 billion ), a 7.2% increase over the first half last year.
The group's profit before tax was down 5.2% from last year. Giant said its gross margin was lowered by a higher mix of OE work, raw material cost increases and labor costs. A temporary halt at its Chinese factory also dampened margins. Profit after tax was up 2.1% to NT$3.62 billion, or earnings per share of NT$9.66.
In the second quarter, an increase in OE business and recovery of the China market drove sales performance. Consolidated quarter net sales came to NT$22.74billion, a
growth of 6.4% and company record for the quarter.
"With the unstable supply chain and suspension of China production facilities that affected the overall production utilization rate, Giant Group still managed to maintain reasonable gross margin at 24.6% but underperformed compared to the same quarter last year."
In the second quarter, an increase in OE business and recovery of the China market drove sales performance. Consolidated quarter net sales came to NT$22.74billion, a
growth of 6.4% and company record for the quarter.
"With the unstable supply chain and suspension of China production facilities that affected the overall production utilization rate, Giant Group still managed to maintain reasonable gross margin at 24.6% but underperformed compared to the same quarter last year."
(Read more.)
GoPro has modest year-over-year revenue growth in second quarter
By: Bicycle Retailer and Industry NewsGoPro Inc. second-quarter revenue grew slightly year-over-year, while the sport camera brand reported a 65% jump in subscribers during the period.
Revenue for the quarter ending June 30 was up 0.4% to $251 million, compared with $250 million at the same time last year. Net income for the quarter was down 51%, from $9.5 million to $4.7 million. Earnings per share dropped 80%, from $0.10 to $0.02.
GoPro subscribers increased year-over-year to 1.91 million. The subscription and service revenue represented "a powerful driver of profitability," said Brian McGee, GoPro's CFO and COO.
Subscription and service revenue increased 71% year-over-year to $20 million.
GoPro subscribers increased year-over-year to 1.91 million. The subscription and service revenue represented "a powerful driver of profitability," said Brian McGee, GoPro's CFO and COO.
Subscription and service revenue increased 71% year-over-year to $20 million.
(Read more.)
Porsche to develop e-bike drive system in collaboration with Ponooc Investment
By: Bicycle Retailer and Industry NewsPorsche announced it will develop an e-bike drive system in the next few years, collaborating with Pon Holdings' Ponooc Investment B.V.
Motors, batteries, and software will be designed by Porsche eBike Performance GmbH, located in Ottobrunn. Stuttgart-based P2 eBike GmbH — powered by Porsche will use the new drive systems to create a new generation of Porsche e-bikes.
A new management team will steer the Porsche-Ponooc partnership. Jan Becker, former CEO of Porsche Lifestyle GmbH & Co. KG, takes over as chairman of the management of Porsche eBike Performance. His P2 eBike counterpart will be Moritz Failenschmid, also the managing director at Focus Bikes.
"We see great potential for Porsche in the e-bike segment. This is why we are consistently expanding our activities in this area," said Lutz Meschke, deputy chairman of the Porsche AG executive board.
A new management team will steer the Porsche-Ponooc partnership. Jan Becker, former CEO of Porsche Lifestyle GmbH & Co. KG, takes over as chairman of the management of Porsche eBike Performance. His P2 eBike counterpart will be Moritz Failenschmid, also the managing director at Focus Bikes.
"We see great potential for Porsche in the e-bike segment. This is why we are consistently expanding our activities in this area," said Lutz Meschke, deputy chairman of the Porsche AG executive board.
(Read more.)
Framebuilders and sponsors on board for new Portland show
By: Bicycle Retailer and Industry NewsDays after an announcement that the North American Handmade Bicycle Show is postponed for this year, a variety of framebuilders and other industry sponsors say they are committed to a new show to be held in Portland in September next year.
The 2023 show is called MADE. According to ECHOS Communications, a PR and marketing agency, the show will feature events at the Portland-area workshops of Chris King, Speedvagen and Breadwinner Cycles, as well as outdoor exhibits. ECHOS said it has commitments from Moots, The Pro's Closet Museum, Bicycling Magazine, Paul Component Engineering, Mosaic, Bike Flights, Schon Studio, Speedvagen, Stinner, Abbey Bike Tools, Chris King, Argonaut Cycles, Breadwinner Cycles, WZRD Bikes, Retrotec, Btchn Bikes, Falconer Cycles, Sierra Buttes Trail Stewardship, Tomii Cycle, Frontier Bikes, Bender Bikes, Bike Flights, Monē Bikes and others. Framebuilders are being offered free booth space for the inaugural edition.
(Read more.)
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Speaking to a friend in the industry they are braced for slowdown but not overly worried as they aren’t in huge debt / have a covid boom forever mentality - they have also seen larger orders pushed into 2023 or cancelled entirely.
Most of mainland Europe and the UK are about to see the shit hit the fan in a way unseen for 50 years or more so I think the covid bike boom is soon to be confined to history.
You also have to factor in inflation - new bike prices are not going down that's for sure, so a bike will have been purchased a year or so ago for 10-20% less than you can get it new now (RRP) so there is no need for people to sell at a bargain price.
Case in point here - I purchased a motorbike right at the start of the pandemic - I can sell it for almost the same price I paid for it as the new price at the dealer has gone up by 20%.
All depends on how bad things get I suppose - if people cant afford to heat their homes the bike may go up for sale cheap, but the type of person buying high end MTB's is usually above average in terms of income so more insulated anyway.
you will enjoy your new/old bike when its done, i guarentee it
I understand the order quantities etc but in Canada we often suffer from multiple mark-ups that add little value to the supply chain especially these days. At the time, when I compared with the European pricing on the website it seemed like something else was going on.
Its also proven that their chains last longest. cassettes of course not if they made out of alloy.
People want that pricey stuff... so they give it to them...
I thought i never write something like this, but they really stepped up their game in the last years. Thats coming from a fox/shimano guy.
If you check out pinion and why its "expensiv" once, then understand the price. they are not a huge company. It takes time or a move like this to up production to lower costs. its quality over quantity but even that a pinion bike is costly, you get alot for your! especially with a belt option the maintenace is near zero. absolutly love it!
why do you need to buy a trigger shifter? you will adapt to the gripshift really quickly. its fantastic to dump a handfull of gears while standing or cruising. it happens all the time that iam in the wrong gear with deraillure and cant shift or my drivetrain hates me for it. pinion does it in a split second
i also had all these gripshifter preconceptions on an mtb, even when i was already riding a commuter pinion bike
"e-bike" is a discrete segment now?? not city/trail/XC/Road, etc? "we're going to make ebikes!" sounds out of touch to me and a great way to fail to reach your market and end up in costco.
Not sure what it’s like in the USA but yea we are pretty much starting to plan for a very rough ride.