Mizuno Corp. reported strong profit improvement in the six months through September 30 despite a modest sales decline. The Americas sharply reduced its loss despite high inventories in the marketplace that pressured sales.
Companywide sales reached ¥91.8 billion, down 1.5 percent.
Operating profits, however, 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 the Americas region, sales slid 10 percent to ¥11.7 billion from ¥13.0 billion “due to the obsolete stock sales suppression.” The operating loss, however, was reduced to ¥100 million from ¥1 billion.
In its statement, Mizuno summarized Americas region’s performance:
- 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.”
In other regions, 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 from ¥8.0 billion. The operating profit rose¥to 110 million from ¥50 million.
In the Asia/Oceania region, sales were flat at ¥10.2 billion. Operating earnings were down slightly to ¥55 million from ¥60 million.
Photo courtesy Mizuno
