As the latest financial reports are being posted by publicly listed bicycle companies, the first effects of the Covid boom are being seen in their sales numbers.
Fox Factory Holding Group (the suspension manufacturer, not the clothing brand) saw year on year sales grow 23.4% for the quarter ended 30th September 2020. Within that it’s bike brands grew 32%.
Meanwhile Giant Group, the parent of Giant Bicycles, grew 14.6% in sales, 23.8% in gross margins and 45% in earnings per share. Giant said that ebike manufacture now represents 27% of their total revenue and that it will continue to expand its ebike production.
European based Accell Group owner of a range of brands including Raleigh, Ghost, Haibike and XLC reported a 38% growth year on year for the September quarter.
Dorel Sports, owner of Cannondale, Mongoose and other brands, grew 22% year on year in sales with operating profits up 400%. We may soon no longer see Dorel’s quarterly financial reports, because CEO Martin Schwartz and other family members, who are also the largest shareholders, are in the process of taking the company back into private ownership.
In a letter to customers dated 2nd November 2020 Mr Schwartz wrote, “As a private company our shares will no longer be publicly traded on the stock exchange. We will have the liberty to pursue opportunities faster, free from constant market scrutiny.