Mizuno Corp. reported sales and profits reached record highs in its fiscal year ended March 31, with sales expanding 7.8 percent. Sales in the Americas grew 4.9 percent as momentum in golf offset declines in baseball/softball and running, but profits slid due to U.S. tariffs.

In the full fiscal year, sales increased to ¥259,045 million ($1.64 billion) year-over-year (YoY) from ¥240,335 million a year ago. Operating profit grew 8.8 percent to ¥22,603 million ($143.5 mm), ordinary profit climbed 12.3 percent to ¥23,985 million ($152.3 mm), and profit attributable to owners of parent increased by 20.6 percent to ¥18,376 million ($116.7 mm). All marked record highs.

Subtracting nine-month results from full-year figures shows sales in the fourth quarter were ¥71,700 million against ¥64,971 million the prior year, a gain of 10.4 percent. Operating profit in the fourth quater declined 2.3 percent to ¥4,662 million. Net profit moved up 32.6 percent to ¥3,494 million.

Mizuno said in its statement regarding its full-year performance, “During the fiscal year under review, the Japanese economy showed a moderate recovery, mainly driven by domestic demand, supported by improvements in the employment environment and an increase in nominal wages. On the other hand, while overseas economies generally remained resilient, uncertainties in trade policies in various countries and continued price increases acted as factors suppressing personal consumption. In addition, heightened geopolitical risks, particularly in the Middle East, contributed to ongoing uncertainty regarding the future economic environment.”

“In the sports market, interest in sports increased against the backdrop of several global sporting events being held.

“Under these circumstances, our group achieved strong sales in Japan in Football, Golf, and Sportstyle shoes and Work business, which leverage our expertise in sports product development. Overseas, sales of Football, Golf, and Sportstyle shoes also increased. The improvement in gross profit margin, driven by initiatives such as strengthening DTC, also contributed to the expansion of our business performance.”

Performance by Region

Japan
In Japan, sales in the fourth quarter rose 7.6 percent to ¥48,780 million. Operating profits declined 6.2 percent to ¥5,021 million.

Net sales in the year increased 5.3 percent YoY to ¥155,152 million, and operating profit climbed 14.7 percent to ¥15,218 million, both marking record highs. Mizuno said of the year’s performance in Japan, “Sales of Football and Golf performed strongly, while Sportstyle shoes and Work business, developed by applying expertise from sports equipment development, also delivered strong performance. In addition, sales of merchandise related to supporting the world championship, utilizing sponsor rights in Baseball, expanded. Direct sales through DTC channels, particularly for Sportstyle shoes, increased and contributed to an improvement in the net sales gross profit margin.”

Europe
In Europe, sales in the fourth quarter jumped 78.0 percent to ¥7,129 million. Operating profit reached ¥78 million against an operating loss of ¥535 million a year ago.

Sales in the year jumped 29.7 percent YoY to ¥30,793 million, and operating profit surged 107.8 percent YoY to ¥1,410 million, both reaching record highs. Mizuno said, “In Europe, a business reorganization was carried out on January 1, 2025, converting European branches into subsidiaries. As a result, the accounting period for these branches in the previous consolidated fiscal year was nine months from April to December, while in the current consolidated fiscal year it is twelve months from January to December. Although sales of Football did not progress as planned due to intensified market competition, sales of Golf and Sportstyle shoes grew significantly, and sales of Running and Indoor shoes also remained strong.”

Americas
In the Americas, sales in the fourth quarter were up 6.0 percent to ¥7,555 million. The region recorded an operating loss of ¥617 million versus an operating loss of ¥559 million the prior year

Sales in the year grew 4.9 percent YoY to a record high of ¥37,748 million, while operating profit decreased 12.4 percent to ¥2,423 million. Mizuno said strength in golf in the year offset declines in baseball/softball and running. U.S. tariffs of approximately ¥8 billion weighed on profits. Mizuno said, “The core Golf business continued to perform well, resulting in increased sales. In addition to strong evaluations of merchandise, particularly forged irons, the company has earned high trust from users for its custom fitting services. On the other hand, rising costs due to reciprocal tariffs put downward pressure on profits.”

Asia and Oceania
In Asia and Oceania, sales in the quarter slid 3.4 percent to ¥8,237 million. Operating profit fell 45.7 percent to ¥263 million.

Sales in the year increased 6.1 percent YoY to a record high of ¥35,351 million, while operating profit slid 11.7 percent to ¥3,565 million. Mizuno said of the full-year performance, “In Asia and Oceania, all sales subsidiaries within the region achieved sales growth on a local currency basis. Sales of Running, Football, and Sportstyle shoes, which are positioned as growth areas, expanded. On the other hand, Golf, which has a high profit margin, saw a decline in sales and profits due to stagnation in the South Korean golf market.”

Sales by Category

Sales by Segment

Overview of Financial Position for the Period
At the end of the current consolidated fiscal year, total assets increased by ¥32,991 million compared to the end of the previous consolidated fiscal year, reaching ¥251,471 million. The main factors were increases in cash and deposits by ¥13,618 million, accounts receivable – trade by ¥5,741 million, and investment securities by ¥4,707 million, respectively.

Liabilities increased by ¥15,832 million compared to the end of the previous consolidated fiscal year, reaching ¥77,191 million. The main factors were an increase of ¥10,050 million in bonds payable and an increase of 2,515 million in accounts payable – other, and accrued expenses. Net assets increased by 17,158 million compared to the end of the previous consolidated fiscal year, reaching ¥174,279 million. As a result, the capital adequacy ratio decreased by 2.7 points from 71.6 percent at the end of the previous consolidated fiscal year to 68.9 percent.

Outlook
For the current fiscal year, Mizuno expects net sales of ¥280 billion (up 8.1 percent YoY), operating profit of ¥25.5 billion (up 12.8 percent YoY), ordinary profit of ¥26.5 billion (up 10.5 percent YoY), and profit attributable to owners of parent of ¥19 billion (up 3.4 percent YoY).

Mizuno said, “Regarding the outlook for Japan’s economy in the fiscal year ending March 31, 2027 (April 1, 2026 to March 31, 2027), a moderate improvement is expected, supported by improvements in the employment environment and increases in nominal wages. On the other hand, if price increases continue due to geopolitical risks such as the situation in the Middle East, this could become a factor suppressing personal consumption. Similar risks are expected in overseas economies, and the business environment is anticipated to remain uncertain due to factors such as supply chain disruptions caused by logistics stagnation and the impact on inventory levels resulting from changes in demand trends. Under these circumstances, the company will strive to improve asset efficiency, including appropriate inventory management, and aim for sustainable growth through the sale of high value-added sporting goods and other products.”

Image courtesy Mizuno