STOCKHOLM (BRAIN) — MIPS' year-over-year net sales jumped 61% in the third quarter boosted by growth in the Sports category, which includes bike helmets. The company attributed the growth to inventory levels improving industry-wide.
"However, many retailers are still trying to come to terms with an unfavorable product mix in the bike category as a whole, but the situation is now far better than during the last two years," said CEO Max Strandwitz. "According to current market data for North America, the growth in volumes has been better than the growth in sales, which indicates that there is still high pressure on clearance sales on bikes in this important market for MIPS."
Net sales for the quarter ending in September were SEK 123 million ($11.6 million), compared with SEK 77 million at the same time last year. The Sports category sales were SEK 111 million, compared with SEK 69 million.
Net income was SEK 36 million for the quarter, up 166% from SEK 14 million year-over-year. Earnings per share increased 164%, from SEK 0.52 to SEK 1.37.
Strandwitz said the bike industry is moving toward an expansion of helmet technology after weathering a period of excess inventory.
Eurobike "reinforced our sense that the sector is starting to feel more positive after a challenging period of high inventory levels and reduced sales," he said. "These high levels of inventory have meant that many helmet brands have not launched as many products as usual. It will therefore be interesting to see how all the new helmet models are received as they are launched during the upcoming season."
MIPS' corporate headquarters is in Stockholm, and its stock is traded on the Stockholm Stock Exchange under the MIPS symbol. Stock quote at Marketwatch.com.
