With brawny sales in the Americas and Europe offsetting some softening in Japan, Mizuno Corp. was able to squeeze out a 0.9 percent gain in revenues to ¥150.0 billion ($1.85 bn) for the fiscal year ended March 31. Revenues increased 2.8 percent in currency-neutral terms.
More encouragingly, net income rose 77.1 percent to ¥2.84 billion ($35 mm). Operating income grew 65.2 percent to ¥4.60 billion ($57 mm).
Sales in Japan dipped 0.9 percent to ¥110.8 billion ($1.36 bn). The Japanese sporting goods giant said in a statement that revenues in its home market were impacted by a consumer slowdown following March’s earthquake and tsunami.
In the Americas, sales grew 9.5 percent to ¥20.2 billion ($249 mm) and were up 16.1 percent on a currency-neutral basis. Mizuno that the both sales and profits “increased significantly” in the Americas.
In Europe, sales advanced 7.0 percent to ¥10.8 billion ($133 mm) and jumped 20.2 percent in currency-neutral terms. In the Asia Oceania region excluding Japan, revenues slipped 0.9 percent to ¥8.25 billion ($102 mm) and were up 2.8 percent on a currency-neutral basis.
Overall, sales of running shoes and other sports shoes showed strong performance on a global basis, with an increase of 10 percent year-over-year.
Gross margins increased grew 1.2 basis points to 42.0 percent of sales due to reduced obsolete inventories, both in Japan and in overseas regions, as well as the decrease in purchasing costs owing to the appreciation of the yen.
For the current year, revenues are expected to reach ¥152.0 billion, representing a gain of 1.0 percent. Net earnings are expected to reach ¥2.5 billion, marking a decline of 12.6 percent. Operating income is expected to slide 4.3 percent to ¥4.4 billion.