Mizuno Corp’s sales declined 7.4 percent in the second quarter ended September 30 in the Americas region, improving from a 10.0 percent drop seen in the first six months of the year.

The figures were attained by extrapolating out first-quarter results from six-month results for the Japanese company.

Sales in the Americas in the quarter were ¥5 billion, down from ¥5.4 billion a year ago. In the six months, sales in the Americas region declined to ¥11.7 billion from ¥13.0 billion “due to the obsolete stock sales suppression.” The operating loss, however, in the six months was reduced to ¥100 million from ¥1 billion.

Mizuno didn’t break out profitability by region when it released first-quarter results.

In its statement, Mizuno summarized Americas region’s performance in the six months:

  • Struggling business of performance running shoes due to market deceleration.
  • Sales decrease due to struggling business for large sports retailer.
  • Signs of recovery for Golf market and satisfactory Golf custom fitting business.
  • Decrease of operating loss due to reduction of loss from inventory disposal and revaluation by improving the inventory control.

Looking ahead, Mizuno predicted further improved profitability in the region due to further reductions in fixed costs while also citing “challenge for new products and new sales channels.”

Companywide, Mizuno’s sales in the second quarter improved 2.7 percent to ¥45.9 billion from ¥44.7 billion. Operating earnings rose significantly to ¥2.3 billion from ¥100 million. Net profits advanced 15.4 percent to ¥1.5 billion from ¥1.3 billion.

In the six months, companywide sales reached ¥91.8 billion, down 1.5 percent.

Operating profits improved to ¥3.9 billion from ¥500 million. Gross margins improved to 41.0 percent from 38.0 percent. SG&A expenses were reduced to 34.9 percent of sales from 33.7 percent. Net income more than tripled to ¥2.5 billion from ¥700 million.

In other regions in the six months, sales in Japan rose slightly to ¥62.5 billion from ¥62.0 billion. Operating earnings climbed to ¥3.40 billion from ¥940 million.

Sales in the EMEA region declined 7.5 percent to ¥7.4 billion while operating profit rose to ¥110 million from ¥50 million. In the Asia/Oceania region, sales were flat in the six months at ¥10.2 billion while operating earnings were down slightly to ¥55 million from ¥60 million.

Photo courtesy Mizuno