Mizuno Corp said revenues rose 11.9 percent in its year ended Mar. 31, to ¥183.2 billion ($2.22 bn). Of the 19.6-billion-yen increase in revenue, ¥9.3 billion yen is attributable to the effect of foreign exchange.
Operating income jumped 57.9 percent to v5.7 billion ($68.9 million).
Although the gross margin declined by 1.5 points given the effect of a weaker yen, the SG&A expense ratio improved by 2.4 points, contributing to an increase in operating profit Net earnings improved 35.7 percent to ¥2.6 billion ($31.9 million).
Sales in Japan were up 3.0 percent to ¥14.4 billion ($1.52 billion. Operating income climbed 22.3 percent to ¥3.1 billion ($37.8 million). Sales of walking shoes grew and running shoes remained strong on the back of a trend toward healthy lifestyles.
European sales were up 38.4 percent to ¥14.4 billion ($175 million). The gains were due to strength in running-related products and indoor sports-related footwear as well as gains made by local subsidiaries that had been established in Italy and Spain. Difficult economic conditions continued for the golf business, although inventories have improved.
Sales in the Americas jumped 32.9 percent to ¥30.6 million ($370 mm), aided by a continued healthy performance in all product categories, including golf, volleyball and baseball, although hinging mainly on running. Operating profits jumped 86.7 percent to ¥1.68 billion ($20.4 million).
Revenues in Asia jumped 50.9 percent to ¥12.9 billion (156 million). Operating profits reached ¥380 million ($31.9 mm) against a loss of $53 million ($600,000)
For its fiscal year ended March 2015, Mizuno expects revenues to reach ¥195.0 billion, a gain of 6.4 percent versus the year-ago period. Operating profit are expected to climb 40.5 percent to ¥8.0 billion while net profit is expected to gain 89.4 percent to ¥5.0 billion.
