Yonex Co., Ltd., the Tokyo-based manufacturer and marketer of racquet sports and golf equipment, said that amid “firm sports markets,” interest in Yonex products grew further as Team Yonex athletes performed strongly in international tournaments, but the company also acknowledged that sales benefited from the depreciation of the yen currency.

In Badminton, the company said the sport expanded further, supported by the success of athletes – not only in Asia – but also in a wide range of regions including Europe.

In Tennis, brand recognition once again was said to increase with the success of Team Yonex athletes, and driving sales growth through the company’s “Head-to-Toe” approach highlighting the entire product lineup.

For the first quarter of the fiscal year ending March 31, 2027, net sales and profits at each level reportedly exceeded the previous forecasts, said to be mainly due to sales to overseas distributors in the Japan segment trending above expectations and the company’s efforts to control SG&A expenses against plan in light of increased uncertainty in the Middle East.

Looking ahead to the second quarter and beyond, the company expects the overall sports market to remain solid. However, Yonex will continue to carefully assess regional differences in demand trends and changes in the external environment, including foreign exchange movements. In addition, the company has partially revised its assumed exchange rates in a weaker yen direction for certain currencies.

In the Sporting Goods Division, overseas sales grew and net sales increased across all sports. The company’s  strengthened “Head-to-Toe” approach was highlighted repeatedly as driving higher sales of footwear and apparel.

Category Summary

Segment Summary
The Yonex business consists of the Sporting Goods division, which is divided into the four regional segments of Japan, Asia, North America, and Europe, and the Sports Facilities division, which only operates in Japan and represents just 0.3 percent of the Yonex business.

Japan Segment
Total Japan segment net sales grew 12.5 percent y/y to ¥17.5 billion in fiscal Q1 2027, exceeding the strong 10.5 percent growth trend in fiscal 2026.

In Badminton, demand reportedly remained solid, with sales exceeding the previous year’s strong performance, supported by spring seasonal demand. Tennis sales held at the previous year’s high level, driven by new products launched at the beginning of the year.

In the Overseas Distributor market, the category was supported by the success of Team Yonex athletes in international tournaments and growing popularity of the sport, sales reportedly grew “significantly” across a wide range of regions including Asia and Europe.

Operating profit in the Japan segment increased 19.9 percent y/y to ¥2.25 billion. Although SG&A increased due to higher personnel expenses and advertising expenses, the increase in gross profit from higher sales exceeded this, resulting in higher operating profit.

Asia Segment
Total Asia segment net sales jumped 16.1 percent to ¥23.7 billion in the fiscal first quarter.

In China, Badminton demand “remained solid” and sales increased, though growth reportedly moderated after the substantial gains through the previous fiscal year. Other products such as Apparel and Bags also continued to grow, and the positive effect of currency translation also lifted net sales.

In Taiwan, the company said badminton continued to be played actively and the market remained stable, and net sales increased, also supported by the positive effect of currency translation.

Operating profit in Asia grew 17.0 percent y/y to ¥4.10 billion in Q1. The company said that although SG&A rose on higher advertising and personnel expenses for strengthened marketing investment, the larger increase in gross profit resulted in higher operating profit.

North America Segment
Total North America segment stumbled on the net sales side in the start to the 2027 fiscal year as net sales inched up just 1.4  percent y/y to ¥2.22 billion in the first quarter.

Tennis products reportedly remained solid, sustaining the prior year’s high level, and in Badminton, racquet sales rose while overall sales held remained flat. Segment sales declined slightly on a local currency basis, but reported sales slightly exceeded the previous year, supported by the positive effect of currency translation.

Operating profit in the North America segment fell 96.6 percent y/y to just 9 million in the first quarter as SG&A increased due to higher advertising expenses and personnel expenses associated with strengthened marketing investment in this priority region under the GGS, resulted in a significant decline in operating profit.

Europe Segment
Total Europe segment net sales grew 23.3 percent y/y to ¥1.85 billion in the first quarter.

Sales in the Badminton category reportedly remained solid, and Tennis product sales also apparently increased, supported by improved brand recognition “resulting from the success of Team Yonex athletes.” For the Europe segment as a whole, net sales increased significantly, due to increased sales and the positive effect of currency translation associated with yen depreciation.

Operating profit in Europe increased 161 percent to ¥224 million as gross profit increased in line with higher net sales and exceeded the increase in SG&A expenses, including personnel expenses and advertising expenses related to marketing activities.

Consolidated Profitability & Expenses
(in yen millions)

Gross profit rose on higher sales, though the margin declined against what was described as “an exceptionally high prior-year base” and on higher raw material prices. SG&A reportedly increased mainly on higher advertising expenses from stronger global marketing and personnel expenses.

Forecast

Yonex Group made upward revisions to its initial forecasts announced on May 12, 2026. While the sports market is expected to remain solid, the company said will carefully assess demand trends by region and the external environment.

Reasons for the Revision
In the first quarter, sales to overseas distributors in the Japan segment progressed above expectations, and SG&A expenses were said to be held below plan in light of uncertainty over the situation in the Middle East. As a result, sales and profit at each level exceeded the company’s May forecast.

Assumptions

  • Revise some assumed exchange rates toward a weaker yen to reflect recent movements.
  • Continue strategic investments for growth under the Global Growth Strategy (GGS).

Image, data and tables courtesy Yonex Co., Ltd.