Mizuno Corp. reported earnings fell sharply and sales more modestly in its nine months ended December 31, impacted by a sluggish performance in the Americas region.
Net earnings tumbled 94.6 percent to ¥100,000 from ¥91.6 million. The operating loss came to ¥300,000 versus an operating profit of ¥2.5 million in the same period a year ago. Mizuno noted that weak British pound caused ¥600,000 of non-operating exchange loss.
Revenues declined 5.1 percent to ¥136.3 million from ¥143.7 million.
In Japan, sales grew 1.7 percent to ¥91.6 million from ¥90.1 million. In the Americas region, sales slumped 24.6 percent to ¥18.4 million from ¥24.4 million. In the EMEA region, sales were off 5.9 percent to ¥11.2 million from ¥11.9 million. In the Asia/Oceania region, sales fell 11.0 percent to ¥15.3 million from ¥17.2 million.
In its statement, Mizuno noted that the drop in sales in the Americas region was due to “the worsening sports goods market conditions such as the bankruptcy of the major retail chains.” Gross margins in the Americas also “dropped significantly due to the worsening sports goods market conditions mainly of running shoes and other goods.”
Mizuno noted that in all regions, it had a “difficult time” in the golf category. On the positive side, Mizuno noted that sales increased on a local currency basis in Japan, Europe, Asia and Oceania.
Image courtesy Mizuno
