Mizuno Corp. reported a significant improvement in earnings in the nine months ended December 31 with the help of lower operating expenses and improved margins.

Sales dipped 1.6 percent to ¥136.4 billion from ¥134.3 billion. The Japanese sporting goods giant said sales decreased slightly in Japan due to the shrink of baseball and golf market and profit-driven business strategy. Competitive sports business and Sports facility service business showed continuous growth. In Americas, sales decreased because of the strategy putting importance on profitability.

Operating profits reached ¥5.1 billion against an operating loss of ¥300 million.

Gross margins improved to 40.9 percent from 38.0 percent due to the reduction of purchase cost and the obsolete stock suppression in Americas. SG&A expenses were reduced 4.3 percent to ¥52.1 billion from ¥49.8 billion. As a percent of sales, SG&A was reduced to 37.1 percent from 38.2 percent.

Net income reached¥3.3 billion versus ¥100 million a year ago. The contribution of securities to retirement benefit trust (¥2.2 billion) was recorded the latest nine months.

By region in the nine months, sales in Japan were down slightly to ¥91.0 million from ¥91.6 million.

Sales in the Americas fell 9.8 percent to ¥16.6 billion from ¥18.4 billion. Sales in the EMEA region were ¥10.8 billion against ¥11.2 million. In the Asia/Oceania region, sales improved to ¥15.8 billion from ¥15.3 billion.

Photo courtesy Mizuno