After a sluggish 2024, which saw its bicycle components sales fall for the second year in a row, Shimano says its latest financial results point to “signs of recovery”, particularly in Europe, where the brand notes retail sales of completed bikes have been boosted as demand has “stabilised”.
In February, Shimano reported that economic “uncertainty” and “weak demand” for cycling products had seen its net sales for 2024 fall 4.9 per cent to ¥451 billion (£2.36bn).
However, the Japanese manufacturer, the world’s largest producer of bicycle components, did note at the time that it had experienced a rebound at the end of the year, a bounce that has continued into 2025, according to the company’s latest financial figures.
According to its figures for Q1, which covers the period between 1 January and 31 March, Shimano’s net bike components sales increased by 15.6 per cent compared to the same period in 2024, jumping to ¥87.97bn (£463m), while operating income rose by 38.5 per cent to ¥14.5bn (£76.5m).
Shimano has attributed this recovery to the success of its 105 and gravel GRX groupsets, as well as renewed interest in completed bikes in Europe.
2025 Pashley Roadfinder electric - Shimano 105 - front mech and crank.jpg (credit: road.cc)“While the strong interest in bicycles continued as a long-term trend, market inventories remained high despite gradual adjustments,” the company said in a statement.
“Overseas, in the European market, market inventories remained at a somewhat high level, while signs of recovery started to appear in retail sales of completed bicycles as demand stabilised.”
However, Shimano reported that, while market inventories returned to normal levels in North America, retail sales of completed bikes remain weak, which the company says is due to a lack of consumer confidence thanks to the ongoing uncertainty surrounding US president Donald Trump’s tariff policies.
A similar picture emerges in Asia and Central and South America, where personal consumption remains sluggish, a trend attributed in Japan to soaring bike prices. In China, however, while demand is strong due to the popularity of cycling, market inventories have remained at a high level since the end of 2024.
“During the first quarter of fiscal year 2025, the global economy maintained strong growth on the back of slowing inflation,” Shimano says.
“However, uncertainty with regard to the outlook increased due to the prolonged unrest in Ukraine and the Middle East, the sluggish Chinese economy, and policy trends in various countries.
“In Europe, personal consumption recovered as inflation subsided, and the economy continued in a gradual recovery trend.
“In the US, although consumer confidence declined due to changes in trade policies, the economy remained strong on the back of a stable employment environment. In China, the economy remained weak as the result of stagnant domestic demand caused by the recession in the real estate sector.”
In its forecast for 2025, Shimano has predicted year-on-year growth for its bike components sales in Europe (12 per cent), North America (five per cent), and Taiwan (10 per cent), though sales are expected to fall in China and Japan by 10 and 23 per cent, respectively.
Overall, Shimano forecasts net sales for 2025 of ¥470bn (£2.5bn), up four per cent on last year, with components sales also forecast to rise to ¥360bn (£1.9bn).
In February, we reported that Shimano’s ongoing crank recall and inspection programme for its Hollowtech II cranks cost the business £70 million in 2024.
Broken Shimano cranks - 1 (credit: road.cc)One of the biggest cycling stories of 2023, Shimano rolled out a recall in the United States and an ‘inspection programme’ in most other territories for its Hollowtech cranksets, which it finally acknowledged after years of speculation that there was an issue with, following over 4,500 reported incidents.
The recall and inspection programme included two generation of the popular Ultegra and Dura-Ace cranksets produced between 2012 and 2019, affecting over 2.8 million bikes across the world.