Revenue Round Up: COVID Effects Begin to Be Felt in Q2
Shimano sales down 15% in first half of 2020
![Shimano factory visit 2018]()
Despite notching some record high stock prices earlier this year, Shimano's bike division sales fell 14.6% in the first half of 2020 to 122,613 million yen. Operating income of the bike division segment also decreased by 19.7% to 22,963 million yen. Shimano's bicycle segment was hit especially hard in this period as the Japanese brand's overall sales only dipped 11.9% in the same period.
Shimano credits the dip in sales to the lockdown that swept across most of the world however it notes that the opening up of countries alongside government incentives and policies encouraging cycling lead to a rapid increase in sales toward the end of the first half of the year. Shimano has withdrawn its forecast for the rest of the year.
More info, here.
Accell Group Records strong June following lockdowns
Accell Group, whose brands include Lapierre, Raleigh and Haibike, recorded June sales 51% than last year but its Q2 as a whole was hampered by a drop in sales in March and April. March and April were down 26.7% average, however the group was able to recover this with May coming in at +23.2% and June +53.1%. After this topsy turvey start to the year though, the Group announced its sales were up 4% turnover up 8.8% for the first six months year on year.
Ton Anbeek, CEO, said: “The pandemic has boosted interest from consumers and Governments in cycling across Europe as an alternative means of healthy, safe and green mobility. We expect this to positively benefit our business in the mid to long term. For the short term, it remains uncertain which direction the pandemic will take. While our first priority remains the health of our people, we are working actively to enhance product availability in H2 and secure a strong supply base in early 2021 for a good start of the next bicycle season. We will do so while maintaining our focus on strict cost and cash control.”
Fox's Q2 Sales Slip Despite Positives for Cycling Division
![photo]()
Fox's sales declined 4.7% in Q2 to $183.1 million year on year, down from $192.1 million in the same period last year. The Specialty Sports Group, which includes Fox's cycling activities, posted a 10% growth in sales but this was offset by the Powered Vehicles Group that saw a decline of 14.5%. The increase in Specialty Sports Group products is primarily driven by increased demand in both the OEM and aftermarket channels.
Despite this slip in Q2, Fox's sales are still up by 3.9% for the first six months of the year with Specialty Sports Group specifically up 4.7%.
Mike Dennison, Fox CEO, said:" Fox's resilient second quarter results reflect the strength of our diversified customer base and performance-defining product portfolio, as well as the commitment and dedication of our talented management team. We overcame an unprecedented shutdown of our U.S. factories and economy associated with the COVID-19 pandemic which lasted for over half of our quarter and we were able to not only effectively restart our business but support an incredibly strong surge in demand for our products across all channels. In addition, our Specialty Sports Group was a standout success in the quarter, exceeding our pre-COVID expectations and delivering 10.0% growth."
More info, here.
MIPS' Sales Down 20% in Q2
MIPS' Q2 sales dipped 20% year on year in the April to June period this year down to SEK 66 million which brought its sales performance from January to June down 5% overall. The soft quarter has been blamed on the impacts of COVID-19 as "helmet manufacturers pulled the emergency brake" however, MIPS noticed an improved performance in June as the world emerged from its locked down state.
MIPS noted that snow helmets were a lot more sluggish than bike helmets due to uncertainty in the industry following the abrupt end of the winter season. In contrast, demand for bicycle helmets is strong for both commuting and recreational purposes.
More info, here.
Garmin Sales down 9%
![photo]()
In a week that included a cyber attack that brought the company to a halt and resulted in a $10 million ransom to restore control, Garmin reported that its sales were down 9% year on year over the second quarter. The biggest losses came from Garmin's outdoor, aviation, and automotive divisions, as you might expect in a pandemic, however these were partially offset by strong performances in the fitness and marine sectors.
Cliff Pemble, president and CEO, said: "Garmin delivered strong second quarter financial results in a period filled with unprecedented challenges. Business conditions rapidly improved from April lows driven by popular fitness, marine, and outdoor products. We believe these results affirm the resilient nature of our business and the strong utility of our products.”
More info, here.
GoPro Revenue Falls 54.1%
It was revealed that GoPro's revenue has fallen by more than 50% for the second quarter in a row as it submitted its Q2 report. For the period up to June 30, revenue fell 54.1% for Q2, which follows a 51% fall in Q1, both based on hte same period last year. The news follows GoPro pivoting to direct sales and letting 20% of its workforce go in April this year, which has apparently led to a 12% increase in revenue in Q2 over Q1 despite the poor sales figures.
Nick Woodman, CEO, said: "Our strategic shift to a more direct-to-consumer business with lower operating costs is working. Camera sell-through during Q2 demonstrates resilient consumer demand for GoPro and an increasing shift to online shopping. We believe GoPro has proven to be a part of global consumers' 'new normal' during the pandemic, and we feel well positioned for the remainder of the year."
More info, here.
Despite notching some record high stock prices earlier this year, Shimano's bike division sales fell 14.6% in the first half of 2020 to 122,613 million yen. Operating income of the bike division segment also decreased by 19.7% to 22,963 million yen. Shimano's bicycle segment was hit especially hard in this period as the Japanese brand's overall sales only dipped 11.9% in the same period.
Shimano credits the dip in sales to the lockdown that swept across most of the world however it notes that the opening up of countries alongside government incentives and policies encouraging cycling lead to a rapid increase in sales toward the end of the first half of the year. Shimano has withdrawn its forecast for the rest of the year.
More info, here.
Accell Group Records strong June following lockdowns
Accell Group, whose brands include Lapierre, Raleigh and Haibike, recorded June sales 51% than last year but its Q2 as a whole was hampered by a drop in sales in March and April. March and April were down 26.7% average, however the group was able to recover this with May coming in at +23.2% and June +53.1%. After this topsy turvey start to the year though, the Group announced its sales were up 4% turnover up 8.8% for the first six months year on year.
Ton Anbeek, CEO, said: “The pandemic has boosted interest from consumers and Governments in cycling across Europe as an alternative means of healthy, safe and green mobility. We expect this to positively benefit our business in the mid to long term. For the short term, it remains uncertain which direction the pandemic will take. While our first priority remains the health of our people, we are working actively to enhance product availability in H2 and secure a strong supply base in early 2021 for a good start of the next bicycle season. We will do so while maintaining our focus on strict cost and cash control.”
Fox's Q2 Sales Slip Despite Positives for Cycling Division
Fox's sales declined 4.7% in Q2 to $183.1 million year on year, down from $192.1 million in the same period last year. The Specialty Sports Group, which includes Fox's cycling activities, posted a 10% growth in sales but this was offset by the Powered Vehicles Group that saw a decline of 14.5%. The increase in Specialty Sports Group products is primarily driven by increased demand in both the OEM and aftermarket channels.
Despite this slip in Q2, Fox's sales are still up by 3.9% for the first six months of the year with Specialty Sports Group specifically up 4.7%.
Mike Dennison, Fox CEO, said:" Fox's resilient second quarter results reflect the strength of our diversified customer base and performance-defining product portfolio, as well as the commitment and dedication of our talented management team. We overcame an unprecedented shutdown of our U.S. factories and economy associated with the COVID-19 pandemic which lasted for over half of our quarter and we were able to not only effectively restart our business but support an incredibly strong surge in demand for our products across all channels. In addition, our Specialty Sports Group was a standout success in the quarter, exceeding our pre-COVID expectations and delivering 10.0% growth."
More info, here.
MIPS' Sales Down 20% in Q2
MIPS' Q2 sales dipped 20% year on year in the April to June period this year down to SEK 66 million which brought its sales performance from January to June down 5% overall. The soft quarter has been blamed on the impacts of COVID-19 as "helmet manufacturers pulled the emergency brake" however, MIPS noticed an improved performance in June as the world emerged from its locked down state.
MIPS noted that snow helmets were a lot more sluggish than bike helmets due to uncertainty in the industry following the abrupt end of the winter season. In contrast, demand for bicycle helmets is strong for both commuting and recreational purposes.
More info, here.
Garmin Sales down 9%
In a week that included a cyber attack that brought the company to a halt and resulted in a $10 million ransom to restore control, Garmin reported that its sales were down 9% year on year over the second quarter. The biggest losses came from Garmin's outdoor, aviation, and automotive divisions, as you might expect in a pandemic, however these were partially offset by strong performances in the fitness and marine sectors.
Cliff Pemble, president and CEO, said: "Garmin delivered strong second quarter financial results in a period filled with unprecedented challenges. Business conditions rapidly improved from April lows driven by popular fitness, marine, and outdoor products. We believe these results affirm the resilient nature of our business and the strong utility of our products.”
More info, here.
GoPro Revenue Falls 54.1%
It was revealed that GoPro's revenue has fallen by more than 50% for the second quarter in a row as it submitted its Q2 report. For the period up to June 30, revenue fell 54.1% for Q2, which follows a 51% fall in Q1, both based on hte same period last year. The news follows GoPro pivoting to direct sales and letting 20% of its workforce go in April this year, which has apparently led to a 12% increase in revenue in Q2 over Q1 despite the poor sales figures.
Nick Woodman, CEO, said: "Our strategic shift to a more direct-to-consumer business with lower operating costs is working. Camera sell-through during Q2 demonstrates resilient consumer demand for GoPro and an increasing shift to online shopping. We believe GoPro has proven to be a part of global consumers' 'new normal' during the pandemic, and we feel well positioned for the remainder of the year."
More info, here.
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Surely riding a "whatever" has gotta be better than a coma. We all gotta be careful of what we wish for.!
But with the pandemic I've been selling all my old or seldom used exercise and fitness equipment. Old weight equipment is selling on Craigslist for more than I paid new. I've sold my old Pivot Les, Yeti SB66c, Specialized Fatboy, not to mention a couple nice road-bikes. They're all selling for at least 30% more than they would have last summer. I have a road bike that has been on Craigslist off-and-on for the last 2 years. Looks like that's about to sell as well.
A local shop here in Portland that usually has 2000+ bikes in its warehouse now reports less than 200. There are great opportunities right now for us bike hoarders to convert bikes to cash and get someone onto a bike for a great deal for both buyer and seller!
"... a great deal for both buyer and seller!"
No need to sugar coat it, let's price gouge these noobs!!!
Brands pretty much move onto the next years stuff once the current is on order and waiting too so its super hard for them to then organise double the qty of bikes in short order, its not just frames, its getting hold of all of the extra parts (also being manufactured to forcasted / pre order numbers) and the time-slots to build them too.
E.g. Nukeproof typically get two batches of frames / bikes, adding a third batch to match covid demand probably isnt possible.
Back in the days as a student, for a business course I had to investigate a company and I picked Accell. They recently signed Nicolas Vouilloz (for Lapierre) and to me that was a huge deal. And I expected it to be huge deal for them too. I called them for an interview and the poor man didn't know what I was going on about, but he was keen to tell about their plans with pedal assisted bikes. That kind of says it, doesn't it? If your company signs Nicolas Vouilloz and you don't even know, mountainbiking isn't high on your agenda.
If it wasn't clear from the article, people are moving away from public transport. Heck, for a good while, public transport was even forbidden for people not traveling for their "crucial professions". So obviously more people are making the shift from public transport to bicycles. And as it are the elderly and otherwise vulnerable people who still feel uncomfortable in public transport, it are those who gravitate towards bicycles with pedal assist. Not for intense sports. Just for travel, work, shopping, visiting people etc. As international travel is discouraged, more people chose for a holiday near home and I wouldn't be surprised if this has inspired more people to buy a new bike for touring. Not necessarily with pedal assist. But also fast commuters/trekking bikes like those from Koga. So that's only the current high they're riding on at Accell. Soon schools will open again and traditionally, loads of young teens will need a bigger bike for their longer commutes and obviously that growth spurt that they get in they're early teens. These won't be e-bikes, but these will be loads of bikes.
Accell doing entry level bikes? I'd say their stuff is decent mid range to some high end stuff. Remember some of the top track cyclists ride Koga bikes too. Not saying track bikes are selling like hot cakes but I do think they do cover the full spectrum except for the low end (what you Americans would call "Wall-Mart bikes").