Yonex Company, Ltd. reported fiscal 2025 first quarter global net sales increased 11.0 percent year-over-year (y/y) to ¥31.07 billion for the period ended June 30, compared to ¥27.99 billion in the prior-year Q1 period. Consolidated sales reportedly reached a record high, driven in part by the positive effect of yen depreciation on overseas sales.

  • Badminton, which represented 57.1 percent of sales at Yonex for the quarter ended June 30, grew 7.7 percent to ¥17.74 billion in fiscal Q1. Non-Japan sales represented 79.5 percent of total category sales.
  • Tennis, which comprised 14.7 percent of sales, dipped 0.8 percent y/y to ¥4.56 billion for the fiscal quarter. Non-Japan sales represented 59.7 percent of total category sales.
  • Golf only delivered 1.5 percent of sales for the quarter and declined 13.0 percent to ¥473 million in the quarter. Non-Japan sales represented 30.4 percent of total category sales.
  • The Others category, which includes Apparel and Accessories, the only category to increase its share of total sales, comprised 26.0 percent of total sales in fiscal Q1. Net sales grew 30.3 percent to ¥8.08 billion in fiscal Q1 2025. Non-Japan sales represented 60.6 percent of total category sales.

Regional Summary

Japan Region
The Japan region’s net sales were up just 1.2 percent y/y in yen terms to ¥13.13 billion in Q1 after jumping nearly 15 percent y/y in the year-ago comparable period.

Badminton sales rose on the back of sustained strong demand and increased sales of Taiwan-made racquets. Despite the favorable performance of new-model soft tennis racquets, tennis sales declined due to a slowdown in the strong demand of recent years. Subsequently, overall domestic sales increased.

Although the company said the Overseas Distributors market continued to trend solidly, sales reportedly declined year-over-year, which had previously seen a significant surge in sales. Overall results were reportedly boosted by the effect of yen depreciation.

The Sports Facilities division, located solely in Japan, saw net sales increase 15.2 percent y/y to ¥214 million in the fiscal first quarter.

The Japan region’s operating profit jumped 37.6 percent to ¥604 million, compared tp ¥439 million in the prior-year Q1 period. The gross profit increase was said to due to higher sales and improvement in gross profit margin that was driven by revisions to international wholesale prices, and despite the decline in domestic gross profit margin resulting from higher material and product purchase prices caused by yen depreciation. SG&A expenses reportedly rose due to spending on IT systems, personnel, and global advertising and marketing activities, but were said to be offset by the increase in gross profit and resulted in higher operating profit.

Asia Region
The Asia region’s net sales increased 23.3 percent in the fiscal first quarter to ¥14.69 billion in yen terms, on top of a 18.4 percent increase in Q1 last year.

In China, demand continued to trend strongly, with badminton product sales experiencing an uptick driven by strong sales of newly launched racquet models. Overall sales increased due to the favorable impact of yen depreciation and a comparative advantage over the prior year’s performance, which was adversely impacted by COVID-19.

In Taiwan, the badminton market remained firm, driven by the successes of the Taiwan national team and an increase in the number of local tournaments, with sales growth primarily in racquets.

Asia region’s operating profit jumped 36.5 percent to ¥2.35 billion in fiscal Q1, after declining in strong double digits in the year-ago period. Gross profit increased on the back of higher sales. The rise in SG&A expenses linked to personnel costs and the launch of the new ERP in January 2024 was more than offset by the increase in gross profit, resulting in higher operating profit.

North America Region
North America region net sales declined 6.1 percent y/y to ¥1.63 billion in fiscal Q1. The company said badminton activities remained solid, particularly in Canada, where many new badminton clubs have been opening. However, sales declined year-over-year, following the strong performance in the prior year driven by post-COVID recovery. Tennis sales reportedly increased due to improved inventory levels and the favorable impact of yen depreciation. Consequently, overall sales declined.

North America’s region operating profit increased 4.9 percent in yen terms to ¥225 million in the first quarter due to an improved gross profit margin and the positive effect of yen depreciation, which offset the increase in personnel and other SG&A expenses.

Europe Region
Europe net sales increased 18.0 percent in yen terms to ¥1.41 billion in the first quarter. In Germany, sales of both badminton and tennis increased. Badminton continued to garner attention due to international tournaments. Also, Yonex tennis racquets continued to be appreciated for their performance and received accolades from a prominent tennis journal for the second year running.

In the U.K., both the badminton and tennis markets reportedly trended solidly, and sales increased due UK in part to the favorable effects of yen depreciation.

Europe region operating profit dipped 0.4 percent in yen terms to ¥135 million after expanding in strong triple digits in the prior-year Q1 period. Gross profit reportedly rose due to higher sales, but SGA expenses such as personnel and advertising and marketing costs also increased, resulting in a slight net decline.

Income Statement Summary
Consolidated gross profit was up 15.1 percent for the quarter to ¥14.11 billion.

Total SG&A expenses increased 13.8 percent y/y to ¥10.79 billion.

Consolidated operating profit increased 19.6 percent y/y in yen terms to ¥3.32 billion in the three-month period ended June 30, 2024. The company said the increase in operating profit was driven by a combination of higher sales and improved gross profit margin mainly in the Japan segment. These gains more than offset the rise in SGA expenses, which included system-related expenditures and other expenses linked to global IT reinforcement, depreciation costs, and personnel costs.

Net profit increased 15.4 percent y/y to ¥2.80 billion in the fiscal first quarter. Earnings per share rose ¥4.51 to ¥32.33 for the quarter, compared to 27.82 per share in the fiscal 2024 first quarter.

Inventory
Inventory was down year-over-year at quarter-end. Inventory was ¥17.72 billion on June 30, compared to ¥18.64 billion on at the end of the 2024 first quarter.

Outlook
Looking ahead, Yonex said it expects to maintain moderate growth and increase revenues and profits, while making investments to achieve mid- to long-term growth in line with its Global Growth Strategy (GGS).

Although the external environment remains uncertain, according to the company, the number of people engaging in sports is expected to continue rising globally as people become more aware of the importance of sports in maintaining their health.

Investments in marketing and human resources are expected to increase over the mid- to long-term, as well as amortization and depreciation of capital expenditures to reinforce the company’s IT and manufacturing functions.

Fiscal 2025 full-year net sales are expected to rise 8.2 percent to ¥126.0 billion for the year ending March 31, 2025, compared to ¥126.0 billion in fiscal 2024. Operating income is is forecast to be up 7.7 percent for the year to ¥12.5 billion, or 9.9 percent of net sales, compared to ¥11.6 billion, or 10.0 percent of sales for the period ended March 31, 2024. Net income is forecasted at ¥9.3 billion for the full fiscal year ending March 31, 2025, a 5.0 percent increase over fiscal 2024 results.

Image courtesy Yonex