Mizuno Corp reported revenues rose 6.1 percent in its first quarter ended June 30, to ¥45.2 billion ($469.7 mm), led by continued gains in running. Operating profit was down 8.2 percent to ¥2.48 billion ($25.8 mm) primarily due to the “sustained rise” in raw material and labor costs.

Net income grew 12.4 percent to ¥1.43 billion ($14.9 mm) due to a reduction in foreign currency losses. Ordinary profit was ¥2.28 billion ($23.7 mm), up 0.6 percent.

According to its statement, Mizuno said, “Running shoes performed well in all areas. Baseball products were sturdy in Japan and the US. With Senoh Corporation joining the Group, its inclusion into consolidation also served as a factor for increased revenue.”

By region, revenues in the Americas grew 3.6 percent as running shoes and high-end, premium ball glove products, performed well (on a currency-neutral (C-N) basis). Recorded revenue was up 19.1 percent to ¥8.09 billion ($84.1 mm) on the back of a weakening yen.

Running shoes were “especially sturdy” in the Americas, rising 6 percent despite sluggish overall sales across the marketplace at major running specialty stores in the US due to a colder start to the spring.

Golf revenues in the Americas were slightly down from the same period the previous year due to the impact of low temperatures and 15 percent decline in the number of rounds played. However, market share rose by 1.3 percentage points to 8.2 percent due to JPX irons performing well and the successful outcome of the Play Famously marketing campaign.
 
Diamond sports and volleyball products were “more or less unchanged” from the same period the previous year. But the market for ball gloves, centered on high-priced products, received market support, leading to a revenue increase of 12 percent.

The Americas recorded an operating profit of ¥623 million ($6.47 mm), slightly down form ¥646 million a year ago.

In Japan, revenues grew 2.7 percent, to ¥31.66 billion ($328.7 mm), “continuing to show healthy performance on the back of an expansion in the population of those participating in lifestyle sports, such as running and walking. While the baseball market languished, gloves, spikes and uniforms performed well. Meanwhile, tennis and volleyball products put up a good fight with new product launches and various promotions.”

Operating profit in Japan was down 12.8 percent to ¥1.82 billion ($18.9 mm).

In Europe, running shoes “continued at a healthy clip,” but overall revenue was down 3.8 percent on a C-N basis because of a negative impact on the golf business from inclement weather conditions. Still, on the back of a weakening yen, C-N revenue rose 10.1 percent to ¥2.64 billion ($27.4 mm). Europe showed an operating loss of ¥90 million ($930,000) against a loss of ¥119 million a year ago.

Share of indoor shoes, such as for volleyball and handball, in Europe is growing at specialty store channels, “showing results that bring about expectations for business expansion into the future.”

In the Asia/Oceania region, C-N revenues were down 6.1 percent. Recorded revenues were up 8.5 percent to ¥2.8 billion ($29.1 mm). Operating profit grew 117.5 percent to ¥170 million ($1.8 mm).

Looking ahead, Mizuno made no changes in its forecast for the year. It expects revenues of ¥183.0 billion yen, operating profit at ¥7.0 billion yen, and net income at ¥4.2 billion yen.