Advertisement

Sign up for our newsletter

Advertisement

Shimano hit by 17.4% sales dip

shimano insider
Josh Cunningham
17 Feb 2017

Shimano attributes dip in sales to bad weather in Europe and economic climates worldwide

Shimano has released its financial results from 1st January to 31st December 2016, with the report showing that the company's overall sales took a 14.7% hit, while its bike sector sales dropped by 17.4%.

Overall sales in 2015 totalled 378,645 million Yen, while in 2016 that number dropped to 322,998 million Yen. 

Shimano has attributed the dip to bad weather impeding its European market, and a combination of bad weather and a testing economic climate causing the Chinese market to slow. It also cites a slow in sales for its Japanese, South East Asian and South American markets. 

Down 17.4% from the previous year, total sales for Shimano's bike sector totalled 259,455 Yen, meaning its operating income decreased 27.5% to 57,874 million Yen.

As a result of the results, Shimano's stock prices have dropped by 0.42% in the last few days, but nontheless Shimano's projected numbers for 2017 show net sales at 330,000 Yen, which would be a 2.2% increase from 2016. 

'The moderate recovery of the European economies is expected to continue, led by domestic demand driven by personal consumption,' reads the report. 'Meanwhile, the UK will start negotiations for Brexit and presidential elections and general elections are scheduled in France, Germany, etc. Depending on the results of these elections, the tempo of economic recovery may slow.' 

Read more about: