Mizuno Corp. reported sales grew 7.8 percent to ¥96.9 billion ($786.3 million) in the six months through Sept. 30. Earnings, however, declined largely due to currency headwinds.

Operating income reached ¥1.4 billion ($11.4 million), down 46.6 percent. Net income was ¥1.5 billion ($12.2 million), down 16.4 percent.

Globally, running shoes continued to be strong, leading to the sales growth. Costs rising mainly in Japan and Europe due to the effects of exchange rates led to the decline in profits.

In the Americas region, sales grew 12.6 percent to ¥16.3 billion ($132.3 million) but were down 3.2 percent on a currency-neutral basis. The Americas region showed an operating loss of ¥68 million ($552,000) against a profit of ¥356 million.

New running footwear products were strong, helping Mizuno regain market share in the category. The brand’s partnership with the Atlanta Track Club also contributed to the recovery. Backed by the partnership agreement with the U.S. national volleyball team, volleyball also remained strong. Golf also saw some recovery in the Americas.

In its home market of Japan, sales grew 3.5 percent to ¥60.8 billion ($493.4 million). Operating income improved 28.4 percent to ¥1.46 billion ($11.8 million). Running, walking training and golf performed well. Baseball underperformed partly attributed to the increase in the nation’s consumption tax rate.

Sales in the EMEA (Europe, Middle East and Africa) improved 10.2 percent to ¥8.52 billion ($69.1 million) and grew 9.5 percent on a currency-neutral basis. The gain was helped by improvement in Germany and strength in running and indoor sports shoes such as ones used for handball. The region showed an operating loss of ¥435 million ($3.5 million) against earnings of ¥380 million in the same period last year.

In Asia and Oceania markets, sales grew 25.3 percent to ¥11.4 billion ($92.5 million) and grew 10.6 percent on a currency-neutral basis. Operating income was reduced 39.4 percent to ¥505 million ($4.1 million).

Mizuno reiterated is guidance for the year. The guidance calls for net sales: ¥200 billion; operating income: ¥6 billion; net income before tax: ¥6 billion; and net income after tax: ¥3.7 billion.

–Tom Ryan