Mizuno Corp. reported that sales in the Americas region rose 1.2 percent in the third quarter and gained 6.6 percent in the nine month year-to-date (YTD) period. Mizuno Corp. reported that sales in the Americas region rose 1.2 percent in the third quarter and gained 6.6 percent in the nine months. The region saw record sales and earnings in the YTD period.

In the third quarter, sales in the Americas region reached ¥8.4 billion ($58.3 mm) against ¥8.3 billion a year ago. Operating earnings in the quarter were ¥1 billion in each period. Third-quarter figures were attained by subtracting six-month results from nine-month results.

For the nine months, revenues in the Americas region grew 6.6 percent to ¥28.9 billion from ¥27.1 billion a year ago. Operating earnings rose 6.7 percent to ¥3.3 million from ¥3 billion a year ago.

Mizuno said in its statement on nine-month results, “In the Americas, sales increased especially in the products for competitive sports although there is a sense of a lull in the expansion of the golf market, which has continued over the past few years. Gross profit margin improved thanks to progress in optimizing inventory levels.”

The Japanese sporting goods firm said both sales and earnings for the region were record highs for the first nine months of a fiscal year.

The exchange rates for each currency in the Americas during the period under review are as follows: U.S. Dollar: 150.62 yen (138.87 yen in the same period of the previous fiscal year); Canadian Dollar: 110.98 yen (103.02 yen in the same period of the previous fiscal year)

Consolidated Results
Consolidated sales in the third quarter grew 4.3 percent to ¥55.8 billion from ¥53.5 billion a year ago. Operating earnings rose 9.1 percent to ¥4.8 billion from ¥4.4 billion. Net income increased 28.6 percent to ¥4.5 billion from ¥3.5 billion.

In the nine months, Mizuno’s net sales were ¥175,364 million, up 4.4 percent year over year. Operating profit was ¥16,003 million, up 16.5 percent year over year. Net profit was ¥12,609 million, up 11.4 percent year over year. Mizuno said all were record highs for the first nine months of a fiscal year.

Mizuno said in its statement regarding its nine-month performance, “During the period under review, the Japanese economy maintained a gradual recovery trend; this was primarily thanks to improved employment and income conditions and continued strong consumption by inbound tourists. Overseas economies have also continued to recover, although there are signs of a standstill in some regions. Meanwhile, the global economic outlook is uncertain, as geopolitical risks and the risk of policy changes due to election results in various countries have increased.

“Thanks to the global sport events that took place, the sport market has enjoyed growing opportunities for a wide range of sports. Meanwhile, the expansion of the sport market for outdoor personal sports such as golf, which continued to expand since the COVID-19 pandemic, has been steady.

“Under such circumstances, the Group’s sales in Japan remained robust in competitive sports products, including football, volleyball, and racket sports, and sales of the work business remained strong. Overseas business performance also expanded, driven in part by the improvement of gross profit margin, in addition to the continued growth in sales of products for competitive sports such as football and lifestyle shoes,” concluded Mizuno.

Other Regions Performance In Nine Months
In Japan, net sales in the nine months were ¥101,974 million, up 3.1 percent year-over-year, while operating profit reached ¥7,912 million, up 0.9 percent year-over-year.

Mizuno said, “In Japan, sales of products for competitive sports, such as football, volleyball, and racket sports, remained strong. In addition, the work business, which is our non-sports businesses remained solid. Sales of lifestyle shoes, which are the focus of our business expansion efforts in this region, increased as well. Meanwhile, rising procurement costs mainly due to the impact of exchange rates became factors that placed downward pressure on profitability.”

In Europe, net sales decreased 1.7 percent year-over-year to ¥19,738 million in the nine months, while operating increased 290.1 percent year-over-year to ¥1,213 million.

Mizuno said, “In Europe, the football business and lifestyle shoes business, which are the focus of our business expansion efforts in this region, enjoyed growth. Additionally, sales of products for competitive sports, such as volleyball, also increased. Gross profit margin of running shoes, which is one of our main products, improved reflecting our efforts to improve the margin.”

In the Asia and Oceania region, net sales were ¥24,789 million, up 12.8 percent year over year while operating profit was ¥3,554 million, up 37.7 percent year over year – all of which were record highs for the first nine months of a fiscal year. Mizuno said, “In Asia and Oceania, the football business, which is the focus of our business expansion efforts in this region, experienced growth in South Korea and Southeast Asia.

Furthermore, sales of products for competitive sports, such as racket sports and volleyball, also increased. Lifestyle shoe sales also grew, even though the sales volume was relatively small.”

Balance Sheet Summary
Total assets at the end of the period under review decreased by ¥71 million from the end of the previous fiscal year to ¥206,079 million. This was primarily due to a decrease in accounts receivable — trade by ¥5,027 million, while other property, plant, and equipment, such as tangible leased assets, increased by ¥2,640 million.

Liabilities at the end of the period under review decreased by ¥9,920 million from the end of the previous fiscal year to ¥54,165 million; this was primarily due to decreases in notes and accounts payable — trade by ¥6,138 million and accounts payable — other, and accrued expenses by ¥2,903 million. Net assets increased by ¥9,848 million from the end of the previous fiscal year to ¥151,914 million.

As a result, the equity ratio increased by 4.8 percentage points from 68.6 percent at the end of the previous fiscal year to 73.4 percent.

Outlook
The consolidated financial results forecast for the fiscal year ending March 31, 2025, has not changed from the financial results forecast announced on November 8, 2024. 

Image courtesy Mizuno