Mizuno Corp. reported revenue in its first quarter ended June 30 reached ¥46.1 billion ($451 mm), up 1.9 percent compared with the same period in the previous fiscal year as running offset a poor golf performance. Operating profits were down 20.1 percent.
Highlights of the quarter include:
・ Revenue totaled ¥46.1 billion, up 1.9 percent compared with the same period in the previous fiscal
・ Operating profit stood at ¥1.98 billion, down 20.1 percent. Ordinary profit totaled 1.84 billion yen, down
19.4 percent. The quarterly net income was 1.03 billion yen, down 27.7 percent.
・ Running-related products continued their solid showing in all areas, but the increase in revenue
was marginal in part due to a reactionary decline following a rush in demand ahead of the
consumption tax hike specific to Japan. Also, operating profit fell on an increase in marketing
・ Meanwhile, manufacturing costs at overseas production sites dropped, improving the gross margin
by 0.4 point.
・ The business related to running-related products remained healthy. The product lineup was
expanded by mirroring the diversifying population of runners, with a boost seen from sales
promotion initiatives at the Hamburg Marathon, where Mizuno became a sponsor for the first time.
・ Indoor sports business revenue rose as brand recognition got a push, especially in the handball
・ Results for golf were bleak, as orders for custom fitting did not stage any growth.
・ Revenue ultimately increased 37.2 percent.
・ The volleyball business performed well, and while its 16 percent growth in revenue is about to make it the
pillar of the business, the running and golf businesses especially struggled with the impact from
inclement weather, such as heavy snowfall, due to the record cold wave.
・ Revenue ended up 4.2 percent higher, which partly reflected the impact of the major weakening of the
yen on the foreign exchange conversion rate.
・ The shoes business in the health arena, such as running and walking shoes, performed well.
Apparel products were also strong.
・ The results of the sports facilities business, which has been expanding, grew from the previous
year partly because of an increase in construction projects and as the operation business were
・ Meanwhile, mid-priced products, especially in golf and baseball, were sluggish in part due to the
consumption tax hike.
・ Revenue fell 6.5 percent partly given the impact of transferring the agency business in the Asian region
which had been conducted in Japan until the previous fiscal year to two consolidated
Forecast for Fiscal 2014
・ Revenue: ¥195.0 billion; operating profit: ¥8.0 billion; ordinary profit: ¥8.0 billion; net
income: ¥5.0 billion. No changes were made from its prior guidance.