Driven by double-digit revenues in footwear and a recovery in its golf segment in the Americas, Mizuno Corp reported revenue rose 9.3 percent to ¥132.2 million ($1.31 bn).
Operating profit stood at ¥3.6 billion ($35.5 mm), up 52.5 percent. Net income was ¥2.1 billion yen (20.7 mm), up 52.1 percent. Mizuno kept its forecast for the full year unchanged.
Although the gross margin in the nine-month period declined 0.7 points because of higher costs such as raw materials and personnel expenses, profits increased significantly as a result of our efforts to curb SG&A expenses.
Mizuno doesn't break out third-quarter figures. Subtracting six month results from nine month figures indicates that sales in the third quarter grew 10.9 percent to ¥43.9 million ($433.7 mm) from ¥39.6 million. Operating earnings reached ¥1.02 billion ($10.0 mm) against a loss of ¥627 million in the same three-month period a year ago. Net income was ¥758 million ($7.5 mm) versus a loss of ¥331 million.
In the Americas, revenues in the nine months improved 31.6 percent to ¥22.3 billion ($220.3 mm) and grew 9.0 percent on a C-N (currency-neutral) basis. Operating profits climbed 67.5 percent to ¥1.09 billion ($10.8 mm).
Mizuno said running shoes continued to be strong in the Americas, with the Mizuno Wave performing well in both South and North America. The Wave Sayonara, launched in July, won awards from major running specialty journals and gained significant support from runners. The golf segment saw a 20 percent revenue gain while its volleyball business also contributed to higher revenue.
In the third quarter, sales in the Americas region grew 38.0 percent to ¥7.23 billion ($7.14 mm) from ¥5.24 billion. Operating earnings reached ¥248 million ($2.45 mm) against a loss of ¥8 million.
In other major regions, Japan’s sales in the nine months grew inched up 0.5 percent to ¥90.9 billion ($898 mm), with strength in running shoes and training apparel goods. Operating profits jumped 36.1 percent to ¥2.07 billion ($20.4 mm) due to tighter cost controls.
In the third quarter, sales in the Japan region eased 1.7 percent to ¥29.2 billion (xx) from ¥29.7 billion. The region netted an operating profit of ¥542 million against a loss of ¥499 million.
In Europe, sales jumped 42.1 percent in the nine months to ¥10 billion ($98.8 mm) and gained 20.0 percent on a currency-neutral (C-N) basis), led by the running category. The region showed an operating profit of ¥180 million ($1.8 mm) against a year-ago loss of ¥57 million. In the third quarter, sales in Europe nearly doubled to ¥3.5 billion ($34.6 mm) from ¥1.77 billion. Operating earnings reached ¥16 million ($158,000), rebounding from a loss of ¥258 million.
By category in the nine months, Footwear sales increased 23.1 percent to ¥40.3 billion ($398.1 mm). Apparel sales inched up 0.1 percent to ¥41.2 billion ($407 mm). Equipment revenues (baseball, golf, etc.) rose 2.8 percent to ¥31.0 billion ($306.3 mm). Other/Services sales advanced 16.6 percent to ¥19.7 billion ($194.6 mm).
