Shimano reveals cost of COVID-19 on its business so far
Article Media Click images to enlarge +
Shimano has reported a surge in fishing tackle sales in the second quarter of the year following the easing of COVID-19 lockdown restrictions across the world.
The group, which also includes a bicycle components business, reported an 11.9% decrease in overall sales to 160,255 million yen for the first half of the year compared to the same period in 2019. Operating income fell 15.8% to 28,674m.
Tackle sales also decreased, but by a fairly modest 1.8% compared to the same period last year to 37,487m (38,179m). Operating income increased 5.5% to 5,771million.
In its report to investors, released today, Shimano said sales in its domestic market dropped temporarily in the summer during the state of emergency. “After that was lifted in late May, they recovered rapidly owing to the fast-growing demand from consumers seeking to enjoy fishing as an outdoor leisure activity.
“Overseas, outings were restricted in many countries as a measure to prevent the spread of the Coronavirus, which impacted sales. From May onwards, fishing regained attention as an outdoor leisure activity, causing demand for angling products to increase.
“In North America sales were underpinned by e-commerce as a mode of purchasing fishing tackle. With the lifting of restrictions in late April, demand for fishing products rapidly increased and sales recovered to the level of the same period last year.”
Shimano added that it was a similar story throughout other regions across the globe, including Europe where it reported a recovery in all countries after June.
In Asia, sales in China regained momentum following recovery from the impact of COVID-19, but reported ‘weak’ sales in other countries in the region.
It added: “In Australia, where the spread of the virus was quickly brought under control, the market rapidly picked up from late April and purchases by retailers remained active.”
Shimano highlighted sales of its Metanium, Twin Power and popular price range spinning reels in Japan, and rods equipped with Spiral X Core, including the Lumamis, in China.
After declining to issue a forecast for the year in its first quarter report because of the uncertainties caused by the COVID-19 pandemic, the group has decided to do so in the Q2 report. It told investors it expected net sales for 2020 to come in at 350,000m compared to 363,230m last year.