Shimano Inc., the world’s largest bicycle-parts maker, reported a 31% drop in nine-month profit as retailers struggled with high inventories and weakening consumer demand.
Net income fell to ¥41.3 billion ($276 million) in the January-September period, while revenue declined 11% to ¥334.9 billion. The Osaka-based manufacturer slashed its full-year profit forecast by 27% to ¥56 billion, citing foreign exchange losses from a weaker dollar against Asian currencies.
The company’s core bicycle components division saw sales decline 12% as retailers in Europe and North America grappled with excess inventory. Unfavorable spring weather in Europe and cooling consumer interest further dampened sales. While China showed some resilience with steady road bike demand, most Asian markets remained sluggish.
The fishing tackle segment also faced headwinds, with sales dropping 5.6% as the post-pandemic fishing boom continued to normalize. Market inventory adjustments showed early signs of improvement in North America and Australia, while European and Asian markets remained challenging.
Operating profit margin contracted to 15.1% from 19.2% a year earlier, reflecting increased costs and pricing pressures. The company maintained its earlier revenue forecast of ¥450 billion for the full year.
