TAICHUNG, Taiwan (BRAIN) — The global slump in bicycle sales, especially in the U.S. and China, has taken a toll on Giant's first three quarters of 2016 with overall revenue down 6.5 percent.
Giant posted revenue of NT $44.2 billion ($1.38 billion) for the first three quarters compared to the same period last year of NT $47.3 billion. After tax income for this year's three quarters was down 19.9 percent from NT $3 billion in 2015 to NT $2.4 billion this year.
Giant officials said in a press release that while the company has benefited from e-bike sales in Europe and a strong market in Japan, a poorly preforming U.S. market—still plagued by high inventory levels — took a bite out of sales.
That was compounded by a continued slow down in sales in China where demand for its bicycles remains soft. Despite the downbeat financial news, Giant officials predict that inventory in the U.S. will return to normal as spring sales unfold next year.
The company has unveiled its 2017 model line and said that retail feedback has been positive, especially for its mountain bike line spec'd with its proprietary carbon wheels and shock system.
Giant's line of adventure e-bikes also enjoyed significant growth in Germany and France. "Next year these products will be available in North America and Australia, and are expected to contribute to Giant's growth in those markets," the release said.
