Mizuno Corp. reported sales grew 11.0 percent in the fiscal third quarter ended December 31, a deceleration from the 23.8 percent growth in the first half, but the company was firing on all cylinders across its portfolio. The nine-month year-to-date period (YTD Period) increased 14.0 percent to ¥168 billion ($1.21 billion), driven by growth in every region and every category.
The Japanese-based sporting goods company’s sales and profits reached record levels in the YTD Period.
SGB Media calculated the third quarter figures by subtracting the first half results from the reported YTD period results. All values and variances related to third-quarter data are approximate.
In the third quarter, sales grew to ¥53.5 billion ($385.3 mm) from ¥48.2 billion in the prior-year Q3 period.
Operating profits and ordinary income each more than doubled to ¥4.4 billion ($31.7 mm) in Q3, compared to ¥2.1 billion in the prior-year period, and net income grew 150 percent to ¥3.5 billion ($25.2 mm), compared to ¥1.4 billion in the corresponding period in 2022.
By region, sales in the quarter grew 10.8 percent to ¥30.7 billion ($221.1 mm) in Japan, gained 10.7 percent to ¥8.3 billion ($59.8 mm) in the Americas, increased 16.7 percent to ¥7.0 billion ($50.4 mm) in EMEA, and gained 7.0 percent to ¥7.6 billion ($54.7 mm) in the Asia/Oceania region.
Among major categories, sales increased 19.7 percent to ¥17.6 billion ($126.7 mm) in footwear, advanced 14.2 percent to ¥14.5 billion ($104.4 mm) in apparel, inched up 0.8 percent to ¥12.8 billion ($92.2 mm) in equipment, and gained 6.2 percent to ¥8.6 billion ($61.9 mm) in the service/others category.
Among sports focuses, baseball product sales climbed 7.7 percent to ¥7.7 billion ($55.4 mm); running sales declined 8.5 percent to ¥5.4 billion ($38.9 mm); golf sales slipped 3.6 percent to ¥5.4 billion ($57.6 mm); football (soccer) sales surged 45.2 percent to ¥4.5 billion ($32.4 mm); indoor revenues (i.e., volleyball, badminton, table tennis, basketball) jumped 39.4 percent to ¥4.6 billion ($33.1 mm); work/business sales were up 4.2 percent to ¥2.5 billion ($18.0 mm); and indoor facilities sales were up 23.3 percent to ¥7.4 billion ($53.3 mm).
In the Americas among major categories, footwear sales increased 29.4 percent to ¥2.2 billion ($15.8 mm), apparel sales grew 7.7 percent to ¥11.4 billion ($10.1 mm), and equipment sales grew 6.8 percent to ¥4.7 billion ($33.8 mm). The Americas region has no sales in the service/others category.
The Americas region represented 12.5 percent of total brand footwear sales in the fiscal third quarter, 9.7 percent of total apparel sales, and 36.7 percent of total equipment sales for the quarter.
In the YTD Period, revenues increased 14.0 percent to ¥168.0 billion ($1.21 bn), operating profit increased 34.3 percent to ¥13.7 billion ($98.7 mm), ordinary income grew 41.5 percent to ¥15.0 billion ($108.0 mm), and net income jumped 44.9 percent to ¥11.3 billion ($81.4 mm).
Non-Japan regions represented 41.1 percent of total global sales in the YTD Period, up 200 basis points from the prior-year corresponding period.
Nine-month YTD period sales gained 18.3 percent to ¥27.1 billion ($195.1 mm) in the Americas. Among categories in the Americas region, footwear sales gained 36.7 percent to ¥6.7 billion ($48.2 mm) in the YTD period, apparel was flat at ¥4.0 billion ($28.8 mm), and equipment sales grew 18.0 percent to ¥16.4 billion ($118.1 mm) for the none-month YTD period.
The Americas region represented 12.5 percent of total brand footwear sales in the YTD period, 8.9 percent of total apparel sales and 39.3 percent of total global equipment sales for the nine-month YTD Period.
Mizuno Corporation expects to reach its previously published forecast of ¥225.0 billion for the fiscal year ending March 31, 2024. Profitability is expected to exceed previous forecasts, with operating income now at ¥16.5 billion versus the prior forecast of ¥15.0 billion, a 10 percent increase. The forecast compares favorably to the ¥12.95 billion operating income in fiscal 22. Net income per share is expected to reach ¥489.02, compared to the previous forecast of ¥430.34 for the year.
Image courtesy Mizuno
