Mizuno Corp. reported last week that the declines in the golf business had moved into positive territory again, but declines continued in the Americas and Japan.  Decreased apparel sales in Japan and China were also cited as contributing factors to the company’s decision to lower its sales and profit forecasts for the fiscal year ending March 31.

Revenues for the fiscal third quarter ended December 31 fell 9.9% to �34.6 billion ($385 mm) from �38.4 billion ($396 mm) for the year-ago period.  The decline came on top of an 11% decline in the prior year period. Gross margins improved 70 basis points to 41.3% of net sales from 40.6% last year. The company swung to a net profit of �0.1 billion ($1 mm) after a year-ago net loss of �1.4 billion ($14 mm).

Europe was the bright spot for Mizuno in fiscal Q3, jumping 21.4% to �1.7 billion ($19 mm), but the volume was not enough to offset declines elsewhere.  Revenues in Japan declined 8.1% to �26.1 billion ($291 mm) for the quarter, while the Americas fell 17.5% to �4.7 billion ($52 mm) and Asia revenues dropped 31.0% to �2.0 billion ($22 mm), due to a large decline in China. 

For the fiscal year ending March 31 Mizuno now expects to post a �1.0 billion profit for the year versus previous estimates for a �2.4 billion profit.  Revenues are now forecast to come in at �145 billion, down from the previous forecast of �160 billion.
 
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