Fishing sales remain weak as Shimano reports 3.1% increase in revenue

Improved fishing sales in Europe and Australia were offset by weak demand in its domestic market in the first quarter of the year for tackle giant Shimano, which reported a modest 3.1% increase in sales compared to the previous year.

In its latest report to investors, Shimano says that while interest in fishing tackle continued, sales remained weak. Revenue from the quarter totaled 55,751 million yen, with operating income decreasing 32.4% to 4,493m.

In a global market that it described as uncertain because of factors that include trade policies around the world, prolonged conflicts in Ukraine and the Middle East and a slowdown in the Chinese economy, the bicycle components and fishing tackle supplier saw its group sales rise by 9.5% to 237,409m.

In Japan, although efforts to reduce inventories made headway, fishing sales remained sluggish. Increased prices contributed to a slump in consumer spending, weighing on the market despite an underlying interest in fishing tackle.

Overseas trends differed by region. In North America sales were largely unchanged from the previous year and inventories remained healthy and appropriate for market conditions.

Europe stood out with ‘robust’ sales, bolstered by favourable weather that encouraged more fishing activity, while inventories were kept at optimal levels.

Asian markets, led by China, showed positive signs as inventory adjustments began to ease, delivering firm sales. Australia benefited from stable fishing conditions, translating into strong sales and well maintained inventory levels.

New product launches contributed to market momentum with the company’s new ULTEGRA spinning reel and ANTARES baitcaster being well received. Additionally, Shimano said demand for its METANIUM DC reels and EXPRIDE rods remained brisk, highlighting ongoing consumer enthusiasm for fishing gear.

Shimano has reduced its guidance for the year from 470,000m in net sales to 460,000m in light of the anticipated continuation of inventory adjustments in the Chinese market, leading to an expected drop in profit margins due to a phase of production adjustments at factories and an increase in non-operating expenses.