By Thomas J. Ryan
Mizuno Corp. lowered its overall outlook for the year as the Japanese company reported sales in its Americas region fell 14.5 percent on a currency-neutral basis for the six months ended September 30.
Reported revenues in the Americas region were down 20.3 percent to ¥13 billion ($175.3 million). Mizuno blamed the poor performance in the Americas region on “worsening sports goods market conditions,” including the bankruptcies of large retail chains. Company officials also cited an oversupply of running shoes and other products in the marketplace “as well as intense competition.”
In South America, the sluggish economy in Brazil and the weak Brazilian real impacted results.
Companywide, Mizuno’s sales slid 3.9 percent in the six-month period to ¥93.1 billion ($872.9 million). About¥3.6 billion ($33.8 million) of the decline as due to currency fluctuations. Net sales decreased ¥3.6 billion ($33.8 million). Operating income was down 65.1 percent to ¥498 million ($4.7 million) while net income tumbled 51.5 percent to ¥705 million ($6.6 million).
The overall corporate decline reflected the challenges in the Americas region as well as the impact of currency fluctuations, official said. Mizuno’s Japan sales rose 1.9 percent. In Asia and Oceania, net sales were down 10.2 percent but grew 1.1 percent on a currency-neutral basis. In Europe, sales slid 5.8 percent but were up 10.5 percent in local currencies.
For the year, Mizuno now expects sales of ¥193 billion, down 1.6 percent. It had previously expected sales to grow 2 percent to ¥200 billion. Operating income is now expected to reach ¥3 billion, up 1 percent year over year. Previously, operating income was projected to reach ¥5.5 billion, rebounding from ¥2.8 billion in the prior year.
Photo courtesy Mizuno
