STOCKHOLM (BRAIN) — MIPS net sales in the second quarter were up 45% year-over-year, with the Sport category driven by demand for snow helmets and less by bicycle helmets. The helmet tech company said this is creating an unbalanced level of bicycle helmet inventory with many low-priced products but fewer higher-priced options.
Net sales for the quarter were SEK 206 million ($20.1 million), compared to SEK 142 million in the same period last year. Net income also increased by 45%, from SEK 55 million to SEK 80 million. Earnings per share fell from SEK 2.10 to SEK 3.04.
MIPS President and CEO Max Strandwitz said the company had more client projects than in any previous year, mostly in the Sport category.
“In the spring, the market speculated that growth in the bicycle industry as a whole was ending after a period of extreme pandemic-related growth,” Strandwitz said. “Along with the majority of the industry, we don’t think that’s the case. There’s a lot of activity in the industry in terms of integrating the value chain of headset brands that are expanding their channel offering. directly to consumer sales, and increased consolidation activity between brands. The general consensus seems to be that there will be a long-term increase in demand for bicycle-related products, primarily due to the positive trends that we’re seeing with e-bikes, commuting and consumers wanting to spend more time outdoors.”
For the first half of this year, MIPS reported that its net sales increased by 53% to SEK 343 million, compared to the first half of last year.
MIPS’ head office is in Stockholm and its shares are traded on the Stockholm Stock Exchange under the symbol MIPS. Stock quote at Marketwatch.com.