Shimano, Inc. reported that sales grew in the mid-single digits over the past nine months, with similar gains across both its Bicycle Components and Fishing segments. Earnings declined amid margin pressures, with its Bicycle Components segment continuing to be impacted by elevated inventory levels in the marketplace, including in North America and China.

Net sales in the nine months increased 4.8 percent from the same period of the previous year to ¥351,020 million ($2.31 bn). Operating income decreased 27.8 percent to ¥36,565 million, ordinary income fell 48.1 percent to ¥30,248 million, partly due to valuation loss on foreign exchange, and net income attributable to owners of parent decreased 61.0 percent to ¥16,105 million. Gross margins eroded to 35.6 percent from 39.0 percent a year ago.

Shimano said in its statement, “During the first nine months of fiscal year 2025, the global economy remained firm. However, views on the economic outlook continued to be cautious due to changes in trade policies around the world and rising geopolitical risks caused by prolonged international conflicts.

“In Europe, personal consumption remained strong as the income environment improved and inflation subsided, and the economy continued to grow moderately. In the U.S., the economy showed signs of deceleration amid the cooling of consumer sentiment due to rising prices stemming from tariff hikes and a slowdown in the labor market. In China, the economic recovery remained lackluster, mainly due to the impact of the prolonged recession in the real estate sector and a slump in personal consumption.

“In Japan, although price hikes dragged down personal consumption, the economy followed a gradual recovery trend, supported by robust demand from inbound tourists and improvements in the income environment.”

Segment Summary

Bicycle Components
Net sales in the Bicycle Components segment increased 4.9 percent from the same period of the previous year to ¥266,243 million ($1.75 bn) while operating income decreased 27.0 percent to ¥30,161 million.

Shimano said, “While the strong interest in bicycles continued as a long-term trend, market inventories remained high in some regions, and inventory adjustments progressed in line with market trends in each region. Overseas, in the European market, retail sales of completed bicycles were robust, backed by stable weather conditions, but market inventories remained at a somewhat high level.

“In the North American market, retail sales of completed bicycles remained weak due to an uncertain economic outlook, but market inventories maintained appropriate levels. In the Asian, Central and South American and Oceanian markets, although retail sales of completed bicycles remained somewhat weak due to the cooling of consumer sentiment, market inventories improved to an appropriate level overall. On the other hand, in the Chinese market, where retail sales for cycling as a sport remained lackluster, market inventories remained at a high level.

“In the Japanese market, retail sales were sluggish due to the soaring price of completed bicycles, but market inventories maintained appropriate levels. Under these market conditions, the Shimano Group’s products were well received, including XTR, the flagship model in our components for mountain bikes, as well as the Deore XT and Deore series, and Q’Auto, which features a self-powered automatic gear-shifting function.

Fishing Tackle
Net sales in the Fishing Tackle segment increased 4.6 percent from the same period of the previous year to ¥84,435 million ($554 mm), and operating income decreased 31.2 percent to ¥6,409 million.

Shimano stated, “While the interest in fishing tackle continued, sales remained firm, and adjustments of market inventories made progress. In the Japanese market, while adjustments of market inventories progressed, sales remained lackluster due to a decline in consumer sentiment as affected by price hikes and extreme heat.

“Overseas, in the North American market, sales remained strong, supported by favorable offshore fishing conditions mainly in the West Coast and the Northeast areas, and market inventories remained at an appropriate level. In the European market, sales were strong thanks to stable weather conditions, as well as favorable market conditions in Eastern Europe, and market inventories maintained an appropriate level. In the Asian market, sales were strong, and inventory adjustments made progress, as demand for high-priced reels was firm, mainly in the Chinese market. In the Australian market, sales were strong, and market inventories remained at an appropriate level, supported by stable fishing conditions.

“Under these market conditions, the new spinning reel StellaT SW was well-received in the market. In addition, order-taking was brisk for Poison Ultima, the pinnacle of our Poison bass rod series.”

Others Segment
Net sales from the Others segment increased 4.5 percent from the same period of the previous year to ¥342 million and an operating loss of ¥6 million was recorded, following an operating loss of ¥14 million for the same period of the previous year.

Balance Sheet and Cash Flows Summary
Total assets as of the end of the first nine months of fiscal year 2025 amounted to ¥897,224 million, a decrease of ¥61,728 million compared with the figure as of the previous fiscal year-end. The principal factors included an increase of ¥11,742 million in construction in progress, an increase of ¥4,471 million in investment securities, an increase of ¥3,538 million in merchandise and finished goods, and a decrease of ¥79,896 million in cash and time deposits.

Total liabilities amounted to ¥71,639 million, a decrease of ¥3,699 million compared with the figure as of the previous fiscal year-end. The principal factors included an increase of ¥1,477 million in others under current liabilities, an increase of ¥1,278 million in accrued employee bonuses, and a decrease of ¥4,237 million in income taxes payable. Net assets amounted to ¥825,584 million, a decrease of ¥58,028 million compared with the figure as of the previous fiscal year-end. The principal factors included a decrease of ¥42,406 million in retained earnings and a decrease of ¥12,056 million in the acquisition of treasury stock.

Forecast for the Fiscal Year Ending December 31, 2025
Shimano maintained its guidance for the year.

Image/Chart courtesy Shimano