Revenue Round Up: The Latest Financial Reports from Giant, Shimano & More
Following the boom across the cycling industry over the past few years the industry is slowing down with demand falling along with revenues although not every piece of news is negative. Let's get into all the key details from brand's recent revenue reports.
You can stay up to date on all Cycling Industry news on Bicycle Retailer.
Giant
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Despite feeling "optimistic with the long-term development of the cycling industry" Giant has announced an annual decline in sales of 16.4%.
The Giant Group's 2023 financial report details its net profit pre-tax fell by 45.1% to NT$4.8 billion as it said a low demand for entry to mid-level products in North America and Europe led to the decline. The company also noted a "huge" growth in bicycle sales from China. Revenue during January and February this year was down by 18% and 27% respectively compared to last year.
In its report, Giant did state that eBikes sold under its branding and those for other companies accounted for 30% of revenue in the last year. Giant said: "E-bikes not only align with the current green energy trend but through product diversification, new innovative products developments and offerings would cater more towards consumers’ lifestyle and broaden global cycling population"
Leatt
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The Leatt Corporation has reported its 2023 revenue dropped by 38% with revenue for the fourth quarter falling by 10% when compared to the same period the previous year.
Yearly revenue for Leatt in 2023 reached $47.2 million a large drop from its 2022 total of $76.3 million. The company said it saw revenue grow in "emerging market areas" in Europe during the fourth quarter as it only saw a 10% drop from $10.9 million to $9.8 million year over year.
CEO Sean Macdonald said: "Although 2023 was a challenging year for the cycling and motorcycle industries, the fourth quarter presented the first indicators of a recovery in certain areas, and we remain extremely optimistic that ordering patterns will improve over time as participation remains strong globally."
Fox Factory
![Fox Float X and DHX 2022]()
Fox Factory's bicycle brands (Fox Factory suspension, Marzocchi, Easton and RaceFace) saw a revenue drop of 43% in the company's 2023 financial year report. The company said the decline was due to “channel inventory recalibration” and “lower end consumer demand.”
Garmin
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Garmin has not followed the downward trend seen by other companies as it recorded an 8% year-over-year increase in revenue for 2023.
Alongside an increase in revenue for the whole financial year, Garmin reported that the fourth quarter saw $1.48 billion in revenue, an increase from the $1.3 billion recorded during the same period the previous year.
During Q3 Garmin stated its fitness revenue rose by 26% compared to the same quarter in 2202 as company-wide consolidated revenue rose from $1.14 billion in 2022 to $1.28 billion. Garmin saw nearly all segments record revenue growth, only its Marine business had a drop of 7%.
President and CEO Cliff Pemble said: "We are entering 2024 with strong momentum from our robust product lineup and have many product launches planned during the year.”
Shimano
![Shimano factory visit 2018]()
Following a fall in sales reported in previous quarters, the full 2023 year report reveals Shimano's 29.5% decrease for the financial year.
Shimano's latest report shows a tough year for the brand as its bike business' operating income was down by 55% compared to the previous year. In the latest yearly report, Shimano said: "Although the booming popularity of bicycles cooled down, interest in bicycles continued to be high as a long-term trend. On the other hand, market inventories generally remained high, despite ongoing supply and demand adjustments."
The report also detailed the company made a full-year loss of 17,625 million yen from its 11-speed crank replacement program.
Thule
![Thule Velospace]()
Thule has seen fourth-quarter sales drop by 5% as it reports its full-year sales fell by 10% compared to the previous financial year.
Overall fourth-quarter net sales for the company dropped from SEK 1,651 million last year to SEK 1,566 million in the same period this year. For the full year net sales dropped from a total of SEK 10,138 million to SEK 9,132 million.
CEO and President Mattias Ankarberg said the company continues to invest and 2024 will be its "biggest launch year in Thule Group's history."
MIPS
![MIPS headquarters]()
MIPS continues to see a decline in sales as it reported a drop in net sales by 15% in Q4 and 37% for the full financial year.
While the overall report reveals a drop in both sales and revenue the brand did state that helmet sales are starting to grow for the first time in more than a year.
President and CEO Max Strandwitz said: "We have previously stated that, in our assessment, the bike sub-category will see a positive development in 2024. This assessment remains unchanged. We believe that the majority of the growth in this sub-category in the coming years will be driven by our customers buying products from us to enable new production of helmets, in contrast to the last few quarters when they have sold helmets they already had in stock to their customers in retail."
GoPro
![photo]()
GoPro reports a decline in revenue for both its fourth quarter and full financial year despite an increase in sell-through of cameras in the second half of the year.
In the past quarter, the company saw revenue fall from $321 million in the period last year to $295 million. For the full financial year, its revenue dropped to $1 billion from $1.09 billion.
Nicholas Woodman, GoPro founder and CEO said: "We're looking forward to launching several new products throughout the year, opening more retail doors at a steady rate, and activating a larger number of marketing initiatives to drive awareness and demand."
Vista Outdoor - Revelyst Business Unit
![Vista Outdoor]()
Vista Outdoor's Revelyst business unit containing brands such as Giro, Bell and Fox Racing has reported a 10% drop in sales during the last quarter. The company said the drop to quarterly sales of $317 million was due to "increased discounting, lower volume, and unfavorable mix as consumers are pressured by high interest rates and other short-term factors affecting their purchases of consumer durable goods."
You can stay up to date on all Cycling Industry news on Bicycle Retailer.
Giant
Despite feeling "optimistic with the long-term development of the cycling industry" Giant has announced an annual decline in sales of 16.4%.
The Giant Group's 2023 financial report details its net profit pre-tax fell by 45.1% to NT$4.8 billion as it said a low demand for entry to mid-level products in North America and Europe led to the decline. The company also noted a "huge" growth in bicycle sales from China. Revenue during January and February this year was down by 18% and 27% respectively compared to last year.
In its report, Giant did state that eBikes sold under its branding and those for other companies accounted for 30% of revenue in the last year. Giant said: "E-bikes not only align with the current green energy trend but through product diversification, new innovative products developments and offerings would cater more towards consumers’ lifestyle and broaden global cycling population"
Leatt
The Leatt Corporation has reported its 2023 revenue dropped by 38% with revenue for the fourth quarter falling by 10% when compared to the same period the previous year.
Yearly revenue for Leatt in 2023 reached $47.2 million a large drop from its 2022 total of $76.3 million. The company said it saw revenue grow in "emerging market areas" in Europe during the fourth quarter as it only saw a 10% drop from $10.9 million to $9.8 million year over year.
CEO Sean Macdonald said: "Although 2023 was a challenging year for the cycling and motorcycle industries, the fourth quarter presented the first indicators of a recovery in certain areas, and we remain extremely optimistic that ordering patterns will improve over time as participation remains strong globally."
Fox Factory
Fox Factory's bicycle brands (Fox Factory suspension, Marzocchi, Easton and RaceFace) saw a revenue drop of 43% in the company's 2023 financial year report. The company said the decline was due to “channel inventory recalibration” and “lower end consumer demand.”
 | Clearly, 2023 was a tale of two halves with the first half of the year generally on plan and the back half of the year, especially after Labor Day, where SSG de-stocking as it relates to Bike and other macro headwinds grew significantly. While the second half of 2023 was challenging, I am pleased that we maintained our disciplined focus on innovation across the enterprise. |
Garmin
Garmin has not followed the downward trend seen by other companies as it recorded an 8% year-over-year increase in revenue for 2023.
Alongside an increase in revenue for the whole financial year, Garmin reported that the fourth quarter saw $1.48 billion in revenue, an increase from the $1.3 billion recorded during the same period the previous year.
During Q3 Garmin stated its fitness revenue rose by 26% compared to the same quarter in 2202 as company-wide consolidated revenue rose from $1.14 billion in 2022 to $1.28 billion. Garmin saw nearly all segments record revenue growth, only its Marine business had a drop of 7%.
President and CEO Cliff Pemble said: "We are entering 2024 with strong momentum from our robust product lineup and have many product launches planned during the year.”
Shimano
Following a fall in sales reported in previous quarters, the full 2023 year report reveals Shimano's 29.5% decrease for the financial year.
Shimano's latest report shows a tough year for the brand as its bike business' operating income was down by 55% compared to the previous year. In the latest yearly report, Shimano said: "Although the booming popularity of bicycles cooled down, interest in bicycles continued to be high as a long-term trend. On the other hand, market inventories generally remained high, despite ongoing supply and demand adjustments."
The report also detailed the company made a full-year loss of 17,625 million yen from its 11-speed crank replacement program.
Thule
Thule has seen fourth-quarter sales drop by 5% as it reports its full-year sales fell by 10% compared to the previous financial year.
Overall fourth-quarter net sales for the company dropped from SEK 1,651 million last year to SEK 1,566 million in the same period this year. For the full year net sales dropped from a total of SEK 10,138 million to SEK 9,132 million.
CEO and President Mattias Ankarberg said the company continues to invest and 2024 will be its "biggest launch year in Thule Group's history."
MIPS
MIPS continues to see a decline in sales as it reported a drop in net sales by 15% in Q4 and 37% for the full financial year.
While the overall report reveals a drop in both sales and revenue the brand did state that helmet sales are starting to grow for the first time in more than a year.
President and CEO Max Strandwitz said: "We have previously stated that, in our assessment, the bike sub-category will see a positive development in 2024. This assessment remains unchanged. We believe that the majority of the growth in this sub-category in the coming years will be driven by our customers buying products from us to enable new production of helmets, in contrast to the last few quarters when they have sold helmets they already had in stock to their customers in retail."
GoPro
GoPro reports a decline in revenue for both its fourth quarter and full financial year despite an increase in sell-through of cameras in the second half of the year.
In the past quarter, the company saw revenue fall from $321 million in the period last year to $295 million. For the full financial year, its revenue dropped to $1 billion from $1.09 billion.
Nicholas Woodman, GoPro founder and CEO said: "We're looking forward to launching several new products throughout the year, opening more retail doors at a steady rate, and activating a larger number of marketing initiatives to drive awareness and demand."
Vista Outdoor - Revelyst Business Unit
Vista Outdoor's Revelyst business unit containing brands such as Giro, Bell and Fox Racing has reported a 10% drop in sales during the last quarter. The company said the drop to quarterly sales of $317 million was due to "increased discounting, lower volume, and unfavorable mix as consumers are pressured by high interest rates and other short-term factors affecting their purchases of consumer durable goods."
| Over the last few months, Revelyst's culture of innovation drove exciting new product introductions at the brand level, secured incremental revenue opportunities for the segment and led to the successful launch of our Revelyst Lyst, which brought products directly to consumers at the enterprise level. I'm also proud to say we are on track and making progress with GEAR Up, our transformation program designed to simplify our business model, deliver increased efficiency in the form of new run-rate profitability improvements and drive organic growth through innovation. This initiative is helping us to shape a culture of innovation and collaboration while also strengthening our operating model. |
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not easy to find out how certain disciplines are performing. but definitely trend downward in the cheaper sub-categories, and one has to think that will start to be reflected in the mid-market soon. The high end? Seems inflation immune, luxury and ultra-luxury brands are still booming in many categories I don't see cycling being any different - when the poor get poorer, guess who gets richer?
@southshorepirate I already assume the mid-market is trending downwards based on model price reductions across several brands. That being said I would also be interested to know if there is a standard definition of mid-market. I assume its a price range, but definitions are going to vary between a manufacture and enthusiast consumers. those labels rarely line up.
Brand marketing teams probably have the market segmented by psychographic preferences, demographics, price point by channel, by category, blah, blah... anything to keep themselves in work without doing anything of substance
Because nothing says green energy like adding a battery and motor to a human-powered device!
Obviously that doesn't take into consideration manufacturing impacts, but for a town bike (as the majority of these giants are), used for a few years, an e bike is likely better for the environment
I’m open to having my mind changed, but gut reaction is that it sounds like marketing crock. The energy and emissions required for manufacturing, charging and disposal of motor and battery obviously have to be factored in.
Anyway I’d be interested to read it. But my comment was a joke and I don’t care that much.
www.bikeradar.com/features/long-reads/cycling-environmental-impact
The huge sales we are seeing right now are not going to be permanent, its just to turn stock to cash.
If you want a cheap bike, get one now, 2025 will not be the year for bike bargains.
If demand is low, supply os high and cash tied up you sell at a discount to turn stock into cash to pay your bills.
If demand is low but met by supply you won’t get any huge discounts and if you think the cost of overall business / production has no bearing on the selling price of a product then I only hope you have no part to play in the pricing of goods or services.
2025 will see a return to supply side meeting demand as all the Covid overstock will be sold through but the increase in costs vs 2019 pre pandemic will mean if you want a bargain get one now - 2025 things will get expensive again.
Does it means that prices will be similar as 2019? Don't think so. As all the things the inflation affects and the prices are higher.
At this moment just something abnormal happened so we see abnormal results, as big discounts issue.
At the end doesn't matter how, the prices get in point as market needs. balance on offer and demand.
As mentioned by others, would be great to see comparisons to pre-pandemic numbers included, and a consistency in the way data is represented. Sometimes it's yen... sometimes it's USD, sometimes we get the percentage drop, sometimes we get the dollar figure and no percentage.
I could go hunting for all this stuff in the reports, I'm just being lazy. to make that easier, could you also include a link to each report in future?