Mizuno Corp. reported sales were down 11.4 percent in its fiscal year ended March 31.

Sales reached ¥150.4 billion compared with ¥169.7 billion a year ago. In its statement, Mizuno said sales “decreased significantly in all region due to the COVID-19 pandemic whereas golf business showed strong performance across all geographies. In Japan, sales dropped in all business categories except face masks and work business.”

Operating profit was down 39.2 percent to ¥3.8 billion. Mizuno said the reduction in expenses was not sufficient to offset the decrease of gross margin. Gross margins eroded from 40.7 percent to 40.3 percent.

Ordinary profit came to ¥6.0 billion, off 0.7 percent. Ordinary profit was boosted by non-operating income, including foreign exchange gain. Net income reached ¥3.7 billion, down 19.0 percent.

By region, sales in Japan fell 9.9 percent to ¥106.3 billion from ¥118.0 billion. Operating profit came to ¥2.5 billion, down from ¥3.9 billion. Mizuno said that despite the COVID-19 pandemic, outdoor sports businesses such as golf and baseball gradually recovered throughout the second half of FY20. Strength was seen in face masks and work business. Mizuno said stock management was effective in keeping its stock level healthy.

Sales in the Americas region fell 6.4 percent to ¥18.1 billion from ¥19.4 billion. Operating profits improved slightly to ¥0.9 billion from ¥0.8 billion. Mizuno said that though sales reduced due to the COVID-19 pandemic, the golf business grew strongly. Business restructuring done in previous years made the U.S. business more profitable. Results benefited from the recording of a gain on sales of the office building.

In the EMEA region, sales were down 14.5 percent to ¥13.0 billion from ¥15.2 billion. EMEA showed an operating loss of ¥300 million against an operating profit of ¥300 million. The EMEA business was severely impacted by the pandemic that resulted in the operating loss. Sales in Golf were relatively good and almost the same level as FY2019.

In the Asia/Oceania region, sales were down 24.4 percent to ¥13.0 billion from ¥17.2 billion. Operating earnings fell to ¥700 million from ¥1.1 billion. Sales declined in all entities in Asia/Oceania, especially in South Korea, because of the COVID-19 pandemic. Business restructuring done in China last year helped the Chinese business return to profitability

For the current fiscal year, sales are expected to rebound to ¥175.0 billion from ¥150.4 billion. Operating income is both expected to reach ¥5.0 billion.

Photo courtesy Mizuno