Globeride, the parent of the Daiwa fishing brand, reported that the global outdoor, sports and leisure industry continued on a moderate recovery trend in the fiscal first quarter ended June 30 despite consumer sentiment being affected by soaring energy prices and rising prices, in general.

Still, the company, which also makes golf, tennis and cycling products, said it achieved higher sales by offering attractive products and high-quality services as sales rose 6.6 percent to ¥31,691 million for the quarter, compared to ¥33,701 million in the prior-year quarter and an initial forecast of ¥33,200 million.

The company said net sales exceeded the initial plan, as the market began to show a moderate recovery, despite the impact on consumer sentiment from soaring energy prices and inflation.

Regional Growth Trends

In the Americas, sales increased amid a solid current market environment, driven by expanded business with major customers.

In Asia-Australia, although the market environment in China remains weak, our sales in China increased, led mainly by sales of lure-related products.

In the Americas and Asia-Australia, inventories increased temporarily in line with sales growth, as we prepared to capture future sales opportunities.

The Group’s inventories increased due to foreign currency translation effects, as well as higher inventory levels in the Americas and Asia.

  • In the Americas, inventories increased due to the impact of tariffs and an increase in orders from major accounts.
  • In Asia, inventories increased at the sales subsidiary in China as a result of the early procurement of fast-moving products. In addition, inventories increased at some Asian factories due to changes in shipping arrangements caused by the situation in the Middle East.
  • At other locations, inventory levels were said to have “remained appropriate.”

Inventories Trend

Profitability and Expenses
While gross profit increased in line with higher sales, the gross profit margin declined due to a deterioration in the cost-of-sales ratio associated with the higher inventories.

Operating profit, which which declined year-over-year and fell short of the initial plan, was impacted by increases in personnel expenses and packing and freight costs.

Quarterly net income declined year-over-year, but exceeded the initial plan as the decline was limited by the recording of a gain on sales of investment securities.

Revisions to Consolidated Financial Results Forecasts
(April 1, 2026 to September 30, 2026)

Globeride, Inc. is reporting that, in light of recent performance trends, a decision was recently made by the company’s Board of Directors to revise the financial results forecasts for the six months ending September 30, 2026 that were initially announced on May 13, 2026. The company has not yet made any changes to the previously announced full-year financial results forecasts.

In the outdoor, sports, and leisure industry, in which the company operates, although rising energy prices and inflation are affecting consumer sentiment, market conditions are showing signs of a gradual recovery. Amid these situations, the company is proactively pursuing a strategy to expand sales overseas and prepare for sales opportunities, which has led to a trend of increasing inventory as we procure goods in advance. As a result, during the second quarter, unrealized gains on unsold inventory within the Group are increasing temporarily, thereby reducing consolidated profits. While this inventory is expected to be cleared during the sales season beginning in the third quarter and is not expected to affect full-year results, inventory levels are anticipated to remain at current levels during the second quarter.

In addition, changes in the product mix resulting from timing discrepancies in production plans are expected to have a temporary impact on operating profit for the second quarter.

Under these circumstances, as it is expected that the company’s operating profit, ordinary profit, and profit attributable to owners of parent for the six months ending September 30, 2026 will fall short of the previously announced financial results forecasts, the company has revised its financial results forecasts for the six months.

Globeride’s portfolio includes fishing (Daiwa), golf (Fourteen, Roddio, G-III, ONOFF), tennis (Prince, Diadem) and cycle  (Focus Bikes, Corratec) in its portfolio.

Image courtesy Daiwa/Globeride, Inc.