Shimano downgrades financial performance to pay for new launch
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Shimano has downgraded its financial forecast for the current year to pay for a new product launch.
The Japanese-based organisation has not revealed whether the launch involves its fishing tackle division or the much larger bicycle components business. The expected increases in expenses will cover the launch, costs to cover the production of the product and improved manufacturing processes.
In its second quarter financial presentation Shimano said that despite concerns over the then escalating trade war between the US and China and the prolonged Brexit ‘problem’ in the UK, it saw its fishing sales increase 4.2%.
It added that fishing sales in its domestic market remained solid and increased on the previous year thanks to warm and stable weather, which resulted in an increase in the number of visitors to retailers across the country.
Overseas, sales in the North American market were also described as solid thanks to a firm economy. Despite concerns over Brexit, Shimano reported an uplift in sales across the UK, while the performance in mainland Europe was ‘sluggish’.
Asian sales were boosted by the continued popularity of fishing in China, while Australian sales continued to grow, particularly at big retailers.
The group reported sales of 38,179m yen in the sector and overall sales across fishing and its much more significant bicycle components business of 181,949m yen – a 4.1% growth compared to the previous year.