The sales of Shimano continue to fall in 2024

Shimano closes the first quarter of the year with a 22.6% reduction in sales compared to the same period of the previous year. The Japanese giant also acknowledges that this trend could continue throughout the year, especially in the European market. Shimano remains trapped in a negative spiral as it tries to bounce back as soon as possible.

Shimano hits rock bottom: sales now drop by 22.6% and predict a challenging 2024

The cycling industry has long been going through a turbulent period that threatens the entire market. Instability and cooling off have taken over after the record numbers recorded during the pandemic. The sector holds its breath in the face of a turbulent present filled with news that severely affects important players such as Giant, Bianchi, BMC, or more recently, the legendary Kona.

However, Shimano is the one that has attracted negative attention; problems for the components empire have been piling up since a record-breaking 2022. Those unprecedented numbers were already understood as a consequence of the exceptional market situation and looked ahead knowing that sales would lose momentum.

The storm hit Shimano in a complex 2023 in terms of brand reputation with the recall of defective cranks from the market, the cyberattack, and the journalistic investigation that accused one of its suppliers of having workers in conditions of labor exploitation. All this is added to the economic aspect with the decrease in sales and profits.

The Japanese giant has been living with the need to launch new products that, as usual, have been well received; in particular, the great reception of the new Shimano 105 12-speed or the GRX gravel group. In addition, the recent registration of several patents -such as a possible completely wireless electronic groupset- suggests that they are still working at full capacity.

Now, Shimano has published the financial results for the first quarter of 2024. If last year ended with a 24.6% drop in sales, the report reflects that sales for the first three months of this year amounted to around 461 million euros; or, in other words, represent a 22.6% drop compared to the first quarter of 2023.

Shimano explains that they are suffering more in the European market than anywhere else. In fact, the drop in sales in the European territory could translate into a contraction of around 175 million euros by the end of the year, according to Bike Europe data, which also suggests that the global sales decline could be around 230 million euros.

One of the most relevant aspects of the report is the different situations in the markets. In Europe, the difficulties encountered in most countries contrast with the good results achieved in Germany and the Benelux. On the other hand, the drop in sales has also occurred in America, Asia, and Oceania due to high inventory levels and -except for the United States and Canada- due to inflation.

China seems to be the exception with a growing interest in road bikes resulting in increased sales and adequate inventory levels.

With this outlook, it remains to be seen how Shimano will face its immediate future and whether it will be able to turn the situation around and see green numbers in its financial results again.