OSAKA, Japan – Shimano has announced a drop in both sales and operating income for its bicycle segment in the first half of 2017.

Net sales for Shimano's bicycle segment declined by 2.7% from the same period of the previous year to 129,080 million yen (approx. US$1,168 million), and operating income decreased 11.5% to 27,063 million yen (approx. US$245 million).

A report issued by the company noted that in Europe, although the spring season was blessed with good weather until Easter in mid-April, the weather became unsettled and continued until early May. Retail sales of completed bicycles were at the expected level for a typical first half, and distributor inventories of bicycles in Europe remained at an appropriate level. In North America, retail sales of completed bicycles were approximately the same as the previous year’s level and distributor inventories remained somewhat low. In China, the growth in bike sharing hampered a recovery of retail sales of completed bicycles, which had been lackluster since 2015. Although retail sales of low-end bicycles were particularly weak, distributor inventories were at an appropriate level. In the Japanese market, retail sales of both sports bicycles and community bicycles were lackluster, but distributor inventories remained at an appropriate level.

Across its entire business, H1 net sales were 163,079 million yen—a 2% decrease from the same period last year. Operating income decreased 9.8 percent to 30,832 million yen.