Mizuno Corp reported operating profits dropped 15.1 percent in the nine months ended December 31 as sales declined 4.9 percent.

Sales in the nine months ended March 31 fell 4.9 percent to ¥127.7 billion from ¥134.3 billion a year ago, according to the report.  In its commentary, Mizuno said the running business struggled in all regions. In Japan, sales decreased due to weak sales of sporting goods and golf although the sports facility service business keeps growing. In Americas, sales decreased “due to sales emphasizing profitability.” In Europe, good sales were seen in indoor sports such as handball and volleyball. In Asia/Oceania, sales decreased due to weak running sales in China and Taiwan.

Operating income declined to ¥4.4 billion from ¥5.1 billion. Mizuno said the improvement of gross margin ratio and the reduction of expenses were not sufficient to offset the decrease in gross profit.

Gross profits declined to ¥53.2 billion from ¥55.0 billion. Gross margins improved to 41.7 percent from 40.9 percent. Net income slumped 13.1 percent to ¥2.9 billion from ¥3.3 billion.

By region, Japan’s revenues fell 4.0 percent from ¥91.0 billion to ¥87.4 billion America’s revenues slid 15.7 percent from ¥16.6 billion to ¥14.0 billion. EMEA improved 3.7 percent from ¥10.8 to ¥11.2 billion. Asia/Oceania slid 5.1 percent from ¥15.8 billion to ¥15.0 billion.

By category, footwear sales fell 5.0 percent from ¥40.1 billion to ¥38.1 billion. Apparel sales slid 4.2 percent from ¥40.4 billion to ¥38.7 billion. Equipment sales slid 9.5 percent from ¥31.5 billion to ¥28.5 billion. Services/others’ sales reached ¥22.4 billion, essentially flat with ¥22.3 billion a year ago.

Extrapolating six-month results from nine-month results shows sales in the third quarter dipped 4.0 percent to ¥40.8 billion from ¥42.5 billion.

Operating profits were down 25.0 percent to ¥900 million from ¥1.2 billion. Net income slid 37.5 percent to ¥500 million from ¥800 million.

In Japan, sales in the third quarter declined 5.6 percent to ¥26.9 billion from ¥28.5 million. Sales in the Americas decreased 4.1 percent to ¥4.7 billion from ¥4.9 billion. EMEA’s sales were down 2.9 percent to ¥3.3 billion from ¥3.4 billion. The Asia/Oceania region’s sales were up 1.8 percent to ¥5.7 billion from ¥5.6 billion.

Image courtesy Mizuno