In the first quarter of 2020 (January 1 to March 31) Shimano has reported a 15.4% year-on-year drop in net sales for its bicycle components division. Q1 2020 net sales were ¥58,868 million (US$544 million). In the same period, operating income decreased 26.1% to ¥10,298 million (US$95 million).
Due to the Covid-19 pandemic, the company also withdraw its forecast guidance for the rest of this year. It stated, ‘Given the difficulty in reasonably calculating consolidated business performance forecasts at this time due to the impact of the novel coronavirus, the company has left forecasts as undetermined. The company will once again announce business performance forecasts as soon as the situation allows.’
Shimano added that it has generally seen high levels of distributor inventory, as sales declined from mid-March during Covid-19 lockdowns in most key markets:
- In Europe, aided by a mild winter since the beginning of year, retail sales of completed bicycles, especially e-bikes, had been strong, but sales declined sharply from the middle of March due to the impact of the novel coronavirus, and distributor inventories of bicycles in Europe increased rapidly.
- In North America, retail unit sales of completed bicycles had been strong, supported by good weather, but then plummeted in March due to the spread of the novel coronavirus. This led to high levels of distributor inventories.
- In China, retail sales were sluggish due to the spread of the novel coronavirus. Meanwhile, distributor inventories generally remained at an appropriate level.
- In South America, in the Brazilian market, retail sales were on a recovery trend after stagnating due to political instability, but retail sales rapidly slowed in late March due to the impact of the spread of the novel coronavirus. In the Argentine market, where currency depreciation continues, sales remained stagnant.
- In the Japanese market, retail sales of community bicycles for commuting to work and school and middle- to high-end sports bicycles were weak throughout the period, but e-bike sales remained strong. Distributor inventories generally remained at appropriate levels.
