Merida bikes are the newest agency to report a drop in gross sales within the present 12 months as the consequences of the worldwide pandemic interval proceed to reverberate all through the bike trade.
Based on a report from Bike Europe, the model – who present bikes for main WorldTour staff Bahrain Victorious – has been compelled to abdomen a major drop of 29.8% in gross sales within the first three months of the present monetary 12 months to TWD 5.86 billion, which equates to €167.78 million.
Regardless of Covid lockdowns now being a historic affair, the consequences of the pandemic are nonetheless very current throughout the trade, with many manufacturers feeling the pinch of overstocking amongst different points.
Final 12 months, Merida reported a drop of 26.4% in gross sales throughout 2023 as a complete, with the reported whole gross sales for the model coming in at TWD 27.16 billion (€798 million). That vital deficit has continued into the primary quarter of the present 12 months and presents one more bleak outlook for a number one determine throughout the commerce.
The model’s gross revenue was 29.7% decrease than within the first three months of final 12 months, and revenue earlier than tax was 27.8% decrease than within the first quarter of 2023.
Earlier this month, fellow Taiwan-based model Large reported a drop in gross sales of 20% within the first quarter of 2024. Large acknowledged that stock points had been largely responsible for the drop off.
Evaluating its figures to the identical interval in 2023, the Taiwan-based firm additionally introduced that its web revenue after tax was NT$520 million (£12.8m, $16.1m) which represented a drop of 37.8% in comparison with final 12 months.
Large and Merida are usually not the one manufacturers to face points this 12 months. Again in March, a leaked inside memo revealed that Trek bikes had been set to make job cuts as a way to “streamline” its enterprise mannequin. Earlier within the 12 months it was additionally reported that Scott bikes obtained a £137m mortgage as a way to fight the overstocking disaster.
Based in Switzerland in 1958, Scott is the official accomplice to WorldTour staff dsm-firmenich PostNL.
