Yahoo Finance Bikes are flying off the racks as coronavirus pandemic drags on: Huffy CEO
Huffy CEO Claude Jordan can’t produce bicycles fast enough right now as demand surges with families looking for safe outdoor activities.
“When you look at January and February, it started off slow. January was down for the overall U.S. bike industry by about 3%. And then as you moved into February, it was up about 2%. In March, it exploded,” Jordan told Yahoo Finance’s The First Trade. Jordan says demand has continued to be robust and broad-based within Huffy’s product categories. But sales have been held back by component shortages out of a key supplier market China, Jordan notes.
“The supply chain is certainly being affected in terms of getting components. Even if you could build the frames, you are struggling to get the rest of the bike so you can go ahead and assemble it and get it onto the shelves,” Jordan adds.
Sales in April for traditional bikes, indoor bikes, parts, helmets, and other accessories surged a combined 75% from a year ago to $1 billion, according to the latest data from NPD Group. Strength was broad-based.
Leisure bicycle sales priced under $200 spiked 203% year-over-year. Mountain bike sales rose 150%. Sales of children’s bikes gained 107%.
“For far too long the cycling industry has been solely focused on the pinnacle athlete, but these results show that a broader, family and beginner focus can reap gains. This is a silver lining, and one of the important sports retail lessons to come out of the pandemic,” said NPD’s sports industry advisor Matt Powell.
Jordan now has Huffy expanding its focus to e-bikes to meet transportation needs in cities during the pandemic. The company boasts 14 different e-bike models.
“You are starting to see that whole category grow. Obviously it started over in Europe and it’s catching on here in the U.S.,” explains Jordan.
Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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