Bike industry continues to face challenges as profits and forecasts falter at Giant, Canyon and Shim
Posted on in Business News , Cycles News
The global bike industry remains under pressure as Shimano, Giant and Canyon all report weaker profits and subdued outlooks for 2025.
Shimano has revised down next year’s forecasts, cutting net sales expectations by 2 per cent and operating income by a third, despite posting a 12 per cent sales rise in the first half of 2025.
The Japanese components giant blamed rising costs, foreign exchange pressures and ongoing inventory adjustments in China, even as it expects sales to stay above 2024 levels.
Giant, the world’s largest bike maker, said revenue dropped 25 per cent in the second quarter and 12 per cent across the first half of the year, with net pre-tax profit down 66.7 per cent year-on-year.
Monthly sales fell by as much as 30 per cent, as tariff uncertainty hit its US business, though the company said inventory levels had returned to “healthy pre-pandemic standards.”
Giant CEO Phoebe Liu said: “While demand in Europe and the US remains soft, we are seeing signs of stabilisation. For example, the UK market has performed strongly. In China, cycling remains popular — though sales have naturally moderated following explosive growth in recent years, the volume remains steady.
“With a long-term view, we believe bicycles are key to sustainable mobility, and we’ll continue driving growth through innovation, quality, and service.”
Canyon also reported a tougher first half, with revenue down 5 per cent and net profit falling by a third, blaming tariffs for weaker US performance but citing strength in European road and gravel markets.
The German direct-to-consumer brand posted a £32m loss in 2024, with investor GBL now valuing its stake 43 per cent lower than a year ago and 35 per cent below its initial investment five years earlier.
The financial pressures reflect a sector still wrestling with post-Covid overstocking, higher costs and softer demand, despite occasional signs of recovery.
“Survive until 2025” has been the cycling industry’s unofficial motto, however for independent UK bike retailers the strain on the high street has been felt acutely, with ACT parent company Bira recently reporting a “plummet” in sales.