Merida bikes are the latest firm to report a drop in sales in the current year as the effects of the global pandemic period continue to reverberate throughout the bike industry.
According to a report from Bike Europe, the brand – who provide bikes for leading WorldTour team Bahrain Victorious – has been forced to stomach a significant drop of 29.8% in sales in the first three months of the current financial year to TWD 5.86 billion, which equates to €167.78 million.
Despite Covid lockdowns now being a historical affair, the effects of the pandemic are still very present within the industry, with many brands feeling the pinch of overstocking amongst other issues.
Last year, Merida reported a drop of 26.4% in sales across 2023 as a whole, with the reported total sales for the brand coming in at TWD 27.16 billion (€798 million). That significant deficit has continued into the first quarter of the current year and presents yet another bleak outlook for a leading figure within the trade.
The brand’s gross profit was 29.7% lower than in the first three months of last year, and profit before tax was 27.8% lower than in the first quarter of 2023.
Earlier this month, fellow Taiwan-based brand Giant reported a drop in sales of 20% in the first quarter of 2024. Giant stated that inventory issues were largely to blame for the drop off.
Comparing its figures to the same period in 2023, the Taiwan-based company also announced that its net profit after tax was NT$520 million (£12.8m, $16.1m) which represented a drop of 37.8% compared to last year.
Giant and Merida are not the only brands to face issues this year. Back in March, a leaked internal memo revealed that Trek bikes were set to make job cuts in order to “streamline” its business model. Earlier in the year it was also reported that Scott bikes received a £137m loan in order to combat the overstocking crisis.
Founded in Switzerland in 1958, Scott is the official partner to WorldTour team dsm-firmenich PostNL.
