Mizuno Corp. saw first quarter net sales increase 7.5% to ¥46.92 billion ($389.0 mm) from ¥43.64 billion (381.4 mm) in the year-ago quarter. The company said it experienced strength in Footwear, Diamond Sports and Golf, but Apparel was soft. Gross margins declined 80 basis points to 42.3% of sales from 43.1% last year, but operating profit still increased 13.3% to ¥3.56 billion ($29.5 mm).
Net income was unable to match the operating profit growth as a one-time gain on asset sales in the year-ago quarter of ¥2.62 billion ($22.5 mm) caused the companys bottom line to drop 44.0% to ¥2.30 billion ($19.1 mm) from ¥4.11 billion ($35.9 mm). Without the year-ago quarterly benefit, net income would have increased 53.8%.
