Mizuno reported profits rose 23% to ¥1.2 billion  ($13 mm) as revenues edged up 0.4% to ¥41.1 billion ($47 mm) in the first quarter ended June 30. The company said rising sales and better inventory management increased its gross margin by 7.4% to ¥17.5 billion ($190 mm). That resulted in gross margin of 42.8% of sales, up 280 basis points from the first quarter of 2009.


Revenues rose in the double-digits in Europe and the Americas on a currency neutral basis thanks largely to footwear and Diamond Sports, where revenues rose 14.1% in Europe and 14.7% in the Americas respectively. The golf business also recovered.


In Japan, revenues decreased 1.7% despite steady sales of running shoes and made-to-order Golf products.  In Europe, sales of high-end  products like custom-fitted golf clubs increased.  Sales of Running Shoes  increased 14.1% increase on local currency basis.

 

In the Americas, revenues rose 14.7% with growth in  Running Shoes and Diamond sports equipment rose. Sales of custom-fitted Golf Clubs also rose, helping golf revenues to recover.

 

In Asia-Oceania, the Taiwan business increased both in revenues and profits due to a good running shoe sales. Profits increased on a 450 basis point increase in gross margin in China despite a sales decline.
　
Revenues comparison vs Q1 of 2009 with currency neutral basis:

 














































Revenues (1Q only)

FY2010

FY2009

Change
y-o-y in JPY
terms

Change y-o-y
currency-neutral


　

JPY in millions

JPY in millions

in %

in %


Japan

29,800

30,318

-1.7%

-1.7%


Europe

2,418

2,340

3.3%

14.1%


Americas

6,623

5,908

12.1%

14.7%


Asia Oceania(excl JPN)

2,315

2,433

-4.8%

-5.8%


Total

41,156

40,999

0.4%

1.3%