Mizuno Lowers Outlook After Tough Q3

March 1, 2009

Mizuno Corp. had a difficult third quarter as continued softness in the global economy slowed sales and caused the company to lower its guidance for the fiscal year through March 2009. The company now anticipates reporting a net loss for the fiscal year following the third quarter declines.

Though Mizuno only reports YTD results for the period, a comparison to first half results indicates that overall global third quarter sales declined 11.0 percent to ¥38.43 billion ($400 mm) from ¥43.20 billion ($382 mm) for the year-ago period. Gross margins declined 40 basis points to 40.7 percent of net sales from 41.1 percent of sales last year. The company posted a net loss of ¥1.52 billion ($16 mm) after a year-ago net profit of ¥802.0 million ($7 mm).

Mizuno reported that net sales for the first nine months of fiscal 2009 declined 5.3 percent to ¥123.18 billion ($1.20 bn) from ¥130.11 billion ($1.11 bn) last year. Gross margins slipped 10 basis points to 41.5 percent of net sales from 41.6 percent of sales last year. As a result of the sales decline combined with the slip in margins, the company reported a net loss for the period of ¥152 billion ($1.5 mm) versus a net profit of ¥2.87 billion ($25 mm) in the year-ago period.

Mizuno now expects net sales of ¥164 billion for the fiscal year, down from earlier guidance of net sales of ¥170 billion. The company also expects to report a net loss for the fiscal year of ¥1.0 billion. At the end of the fiscal first half, Mizuno had anticipated annual net income of ¥2.8 billion.

Separately, Mizuno USA, Inc. launched a new advertising campaign to feature the company’s “Never Settle” tagline. The new campaign targets each of Mizuno’s U.S. sporting goods categories in a targeted, yet integrated manner, including golf, baseball, softball, running, and volleyball and will appear in national and regional publications throughout the year.

“The campaign depicts the intensity and commitment that our consumers place on their respective sport, never settling for anything but putting forth their best efforts each and every time, and the fact that Mizuno takes the same ‘Never Settle’ attitude when it comes to producing equipment of unsurpassed performance,” said Lisa Mark, Senior Director of Marketing Services, Mizuno USA, Inc. “Our new campaign captures the essence of the Mizuno brand personality, while injecting a strong emotional component to help strengthen our relationship with our consumer.”

Mizuno Lowers Outlook After Tough Q3

February 18, 2009
SGB Executive
by

Mizuno Corp. had a difficult third quarter as continued softness in the global economy slowed sales and caused the company to lower its guidance for the fiscal year that ends at the end of March. The company now anticipates reporting a net loss for the fiscal year following the Q3 declines.


Though Mizuno only reports YTD results for the period, a comparison to H1 results shows Q3 sales fell 11.0% to ¥38.43 billion ($400.0 mm) from ¥43.20 billion ($381.9 mm) for the year-ago period. Gross margins declined 40 basis points to 40.7% of net sales from 41.1% last year. The company posted a net loss of ¥1.52 billion ($15.8 mm) after a year-ago net profit of ¥802.0 million ($7.1 mm).


Mizuno reported net sales for the first nine months of fiscal 2009 declined 5.3% to ¥123.18 billion ($1.20 bn) from ¥130.11 billion ($1.11 bn) last year. Gross margins slipped 10 basis points to 41.5% of net sales from 41.6% last year.
 
As a result of the sales decline combined with the slip in margins, the company reported a net loss for the period of ¥152 billion ($1.5 mm) after a net profit of ¥2.87 billion ($24.5 mm).


Following the sales decline, the company lowered its guidance for the fiscal year ending at the end of March. Mizuno now expects net sales of ¥164.00 billion for the fiscal year, down from earlier guidance of net sales of ¥170.00 billion. The company also expects to report a net loss for the fiscal year of ¥1.00 billion. At the end of the fiscal first half, Mizuno had anticipated annual net income of ¥2.80 billion.

Mizuno Lowers Outlook After Tough Q3

February 16, 2009
SGB Update

Mizuno Corp. had a difficult third quarter as continued softness in the global economy slowed sales and caused the company to lower its guidance for the fiscal year that ends at the end of March. The company now anticipates reporting a net loss for the fiscal year following the Q3 declines.


Though Mizuno only reports YTD results for the period, a comparison to H1 results shows Q3 sales fell 11.0% to ¥38.43 billion ($400.0 mm) from ¥43.20 billion ($381.9 mm) for the year-ago period. Gross margins declined 40 basis points to 40.7% of net sales from 41.1% last year. The company posted a net loss of ¥1.52 billion ($15.8 mm) after a year-ago net profit of ¥802.0 million ($7.1 mm).


Mizuno reported net sales for the first nine months of fiscal 2009 declined 5.3% to ¥123.18 billion ($1.20 bn) from ¥130.11 billion ($1.11 bn) last year. Gross margins slipped 10 basis points to 41.5% of net sales from 41.6% last year.

 

As a result of the sales decline combined with the slip in margins, the company reported a net loss for the period of ¥152 billion ($1.5 mm) after a net profit of ¥2.87 billion ($24.5 mm).


Following the sales decline, the company lowered its guidance for the fiscal year ending at the end of March. Mizuno now expects net sales of ¥164.00 billion for the fiscal year, down from earlier guidance of net sales of ¥170.00 billion. The company also expects to report a net loss for the fiscal year of ¥1.00 billion. At the end of the fiscal first half, Mizuno had anticipated annual net income of ¥2.80 billion.

Mizuno Lowers Outlook After Tough Q3

February 1, 2009
SGB Update

Mizuno Corp. had a difficult third quarter as continued softness in the global economy slowed sales and caused the company to lower its guidance for the fiscal year through March 2009. The company now anticipates reporting a net loss for the fiscal year following the third quarter declines.

Though Mizuno only reports YTD results for the period, a comparison to first half results indicates that overall global third quarter sales declined 11.0 percent to ¥38.43 billion ($400 mm) from ¥43.20 billion ($382 mm) for the year-ago period. Gross margins declined 40 basis points to 40.7 percent of net sales from 41.1 percent of sales last year. The company posted a net loss of ¥1.52 billion ($16 mm) after a year-ago net profit of ¥802.0 million ($7 mm).

Mizuno reported that net sales for the first nine months of fiscal 2009 declined 5.3 percent to ¥123.18 billion ($1.20 bn) from ¥130.11 billion ($1.11 bn) last year. Gross margins slipped 10 basis points to 41.5 percent of net sales from 41.6 percent of sales last year. As a result of the sales decline combined with the slip in margins, the company reported a net loss for the period of ¥152 billion ($1.5 mm) versus a net profit of ¥2.87 billion ($25 mm) in the year-ago period.

Mizuno now expects net sales of ¥164 billion for the fiscal year, down from earlier guidance of net sales of ¥170 billion. The company also expects to report a net loss for the fiscal year of ¥1.0 billion. At the end of the fiscal first half, Mizuno had anticipated annual net income of ¥2.8 billion.

Separately, Mizuno USA, Inc. launched a new advertising campaign to feature the company’s “Never Settle” tagline. The new campaign targets each of Mizuno’s U.S. sporting goods categories in a targeted, yet integrated manner, including golf, baseball, softball, running, and volleyball and will appear in national and regional publications throughout the year.

“The campaign depicts the intensity and commitment that our consumers place on their respective sport, never settling for anything but putting forth their best efforts each and every time, and the fact that Mizuno takes the same ‘Never Settle’ attitude when it comes to producing equipment of unsurpassed performance,” said Lisa Mark, Senior Director of Marketing Services, Mizuno USA, Inc. “Our new campaign captures the essence of the Mizuno brand personality, while injecting a strong emotional component to help strengthen our relationship with our consumer.”

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