Mizuno's reported its profits plunged in its fiscal first quarter ended June 30 as exchange rates overwhelmed a 4.3 percent increase in net sales, which reached ¥48 billion ($394 mm).

Sales, particularly those of running shoes, continued to be strong in all areas, allowing Mizuno to increase sales. However, due to the effects of exchange rates, costs rose, causing all of the operating income, ordinary income, and net income for the current quarter to fall. As a result, operating income plunged 61.6 percent to ¥760 million ($6 mm), ordinary income fell 25.0 percent to ¥1.38 billion and net income declined 25.3 percent to ¥770 million ($11mm).

Americas
The running shoes business in North America, the main cause of sluggish performance in the previous year, saw sales of new models continue to be strong although overall sales fell compared to a year earlier. The partnership with the Atlanta Track Club, one of America’s largest running clubs, began, and this and other factors helped Mizuno to recover in the second half of the first quarter.

Backed by the partnership agreement with the U.S. national volleyball team, sales of all items in the volleyball product lineup remained strong.

Mizuno implemented a marketing program focusing on custom fitting golf clubs. This led to gaining a greater share of the market.

Europe
Sales of running shoes and indoor sports shoes continued to be strong.

In the running shoes business, Mizuno was active as a sponsor of the Hamburg Marathon in Germany. Through related events, the company engaged in public relations activities to raise the recognition level of its brands.
In the indoor sports business, handball-related sales remained particularly strong. 40% players who advanced to the finals of the international championship in Europe wore Mizuno shoes. This improved the recognition level of the Mizuno brand, contributing to increased sales.

As the golf club market remained highly competitive, Mizuno’s new iron products were highly rated, helping to gain a greater share of the market.

Asia
In its second year of operation, Mizuno Singapore’s business remained steady. Major product lineups include running shoes, running apparel, and indoor sports shoes.

In Taiwan, directly managed outlets of running shoes continued to be strong. Their strong performance contributed significantly to greater brand value.

Chinese operations reduced administrative costs by achieving greater operational efficiency through the merger of the sales and production subsidiaries.

Japan
Sales continued to be strong in the shoes business in health areas such as running, walking, and training shoes as well as in competitive sports areas such as racket sports. 

The designated management facility operation business continued to perform well. The Senoh Group’s business of tools for athletic facilities also remained strong.

Sales of golf and baseball products in the medium price range continued to recover but did not reach the level that had been attained before the consumption tax rate was raised.

Fiscal year guidance
Mizuno affirmed its guidance for the full fiscal year ending March 31, 2016, which calls for net sales of ¥200 billion ($1.6 bn); operating income: ¥6 billion  ($49 mm); ordinary income: ¥6 billion; and net income: ¥3.7 billion ($30 mm).