Japan-based sporting goods company Mizuno Corporation reported that profits declined 5.0 percent in its fiscal first quarter, ended June 30, as higher operating costs offset increased gross margins and a 4.6 percent revenue gain. In the Americas region, company sales advanced 5.1 percent, led by golf, to reach a record quarterly high, but profits were down slightly.

Mizuno is coming off a year when sales and profits reached record highs.

In the first quarter, total sales reached ¥63,528 million, up 4.5 percent year-over-year (y/y); operating profit was ¥6,281 million, down 3.3 percent y/y; ordinary profit totaled ¥6,762 million, down 8.6 percent y/y; and profit attributable to owners of parent was ¥4,880 million, down 5.0 percent y/y.

Gross margins improved to 42.2 percent from 41.5 percent, but selling, general & administrative expenses increased to 32.2 percent of sales from 30.8 percent a year ago. Mizuno attributed the higher operating costs to labor and inflation.

Mizuno said, “During the first quarter of the consolidated cumulative period, the Japanese economy maintained a moderate recovery trend due to expectations for improvements in employment and income conditions. However, there were downside risks to the economy stemming from the impact of U.S. trade policies and adverse effects on consumer sentiment caused by rising prices. Overseas economies also faced an uncertain outlook, influenced not only by U.S. trade policies but also by geopolitical risks. Under these circumstances, in Japan, our group saw strong sales of competitive sports products such as Football and Volleyball, as well as non-sports businesses, including Work business and Sportstyle shoes. Overseas, sales also grew, mainly in competitive sports such as Football and Volleyball, resulting in record-high group net sales. On the other hand, selling, general and administrative expenses increased due to factors such as investment in human capital and inflation.”

Regional Performance
In the Americas region, sales reached a record first-quarter high of ¥11,873 million, an increase of 5.1 percent y/y, while operating profit decreased 1.8 percent y/y to ¥1,770 million. Mizuno said in its statement, “In the Americas, the mainstay Golf business continued to perform well. In addition, although still small in scale, new business areas such as Football and Pickleball are showing a trend of expansion. On the other hand, personnel expenses, depreciation from capital investments, and logistics costs increased.”

In its home market of Japan, sales reached ¥34,743 million, down 0.2 percent y/y, while operating profits decreased 2.6 percent y/y to ¥3,048 million. Mizuno said, “In Japan, sales of competitive sports products such as Football and Volleyball performed well. Sales also increased in the Work business, which is a non-sports business, as well as in Sportstyle shoes, which we are focusing on. On the other hand, sales decreased in the Sports facility services business and the Diamond sports business. In addition, selling, general and administrative expenses such as personnel expenses and logistics costs increased.”

In Europe, sales reached a record high of ¥7,965 million, representing a 23.0 percent y/y increase. Operating profit jumped 41.0 percent to ¥388 million. Mizuno said, “In Europe, in addition to the strong performance of the core Running business, sales of Golf products and the focused Sportstyle shoes also increased.”

In the Asia and Oceania region, sales reached a record high of ¥8,945 million, up 8.9 percent y/y, while operating profit was ¥1,100 million, down 20.2 percent y/y. Mizuno said, “In Asia and Oceania, the Football business, which is focusing on business expansion, grew in South Korea and Southeast Asia, and sales of other sports products such as Racket sports and Volleyball also increased. Sales of Sportstyle shoes also expanded, and Work business in Taiwan is growing steadily. Although selling, general and administrative expenses were controlled, the gross profit margin deteriorated, resulting in a decrease in profit.”

Outlook
Mizuno maintained its outlook for the current fiscal year. For the current year ending March 31, 2026, Mizuno’s forecast calls for sales of ¥260,000 million (up 8.2 percent y/y); operating profit of ¥22,500 million (up 8.3 percent y/y); ordinary profit of ¥23,000 million (up 7.7 percent y/y); and profit attributable to owners of parent of ¥16,500 million (up 8.2 percent y/y).

Image/Chart courtesy Mizuno