Shimano released its third-quarter financial results on October 28, reporting a 4.9% year-on-year increase in bicycle components sales for the first nine months of 2025 — reaching ¥266.243 billion. However, operating income dropped 27.0% to ¥30.161 billion, reflecting ongoing challenges despite steady demand for performance cycling products.
While Shimano maintains confidence in the long-term trajectory of the cycling market, inventory conditions tell a more complex story. Distributor stocks in Europe and China remain elevated, whereas levels in North America, Asia, Latin America, and Oceania have largely normalized.
In Japan, soaring complete-bike prices have softened retail momentum, yet inventories remain healthy. Europe continues to enjoy robust sell-through thanks to favorable weather, but high stock levels linger. North America faces weak consumer confidence amid economic uncertainty, keeping retail sales sluggish, though inventory is at appropriate levels. Across Asia, Latin America, and Oceania, tightening household budgets have slowed retail demand slightly, but inventories have broadly corrected. Meanwhile, China’s recreational cycling segment has yet to rebound, with inventory still sitting high and consumers cautious.
Shimano reports continued strong interest in its high-end MTB platforms — XTR, DEORE XT, and DEORE — along with Q’AUTO, an automatic shifting system with self-powering capability. These products underscore Shimano’s push toward advanced, value-added technologies to drive market recovery.
Despite resilient enthusiasm for cycling worldwide, Shimano remains cautious, citing shifts in global trade policy, heightened geopolitical risks, and volatile consumer sentiment. Regional economic performance varies: Europe benefits from easing inflation and strong consumer spending; the United States faces tariff-driven price pressure and a cooling labor market; China continues to struggle with a long-term property slump and weak consumer confidence; Japan, while challenged by rising prices, sees gradual recovery supported by tourism and improving income.
