Sales decreased significantly in all regions where Mizuno operates due to the impact of the pandemic. The Japanese group’s revenues for the first fiscal quarter ended on June 30 were off by 32.0 percent from the year-ago quarter to 28,700 million yen (€229.0m-$268.9m). The gross margin narrowed by 3.3 percentage points to 39.3 percent, and the group ended with a net loss of ¥1,100 million (€8.8m-$10.3m), against net income of ¥1,300 million last year. Mizuno moved its U.S. headquarters during the quarter, recording a ¥527 million (€4.2m-$4.9m) profit on the sale of the building.

In Japan, revenues were down by 39.8 percent to ¥17,100 million (€136.4m-$160.2m), which the company blamed on widespread cancellation of sports events and a decline in consumption as customers stayed at home.

The situation was slightly better in foreign markets. Overseas sales represented 40 percent of the turnover, compared to 33 percent for the same three months in 2019.

In the EMEA region, sales declined by 29 percent to ¥2,600 million (€20.7m-$24.3m), due to store closures there and the depreciation of the euro.

In the Americas, Mizuno’s revenues inched down by 3 percent to ¥5,500 million (€43.9m-$51.5m). In Asia/Oceania, they tumbled by 23 percent to ¥3,400 million (€27.1m-$31.8m), as the brand continued to be impacted by the boycott of Japanese products in South Korea.

In terms of products, all categories were down for the year, with footwear falling by 34 percent to ¥12,100 million (€96.5m-$113.3m), apparel by 35 percent to ¥12,900 million (€102.9m-$120.8m), equipment by 24 percent to ¥10,000 million (€79.8m-$93.6m), and Service/Other by 34 percent to ¥7,100 million (€56.6m-$66.5m).

Mizuno did not provide any guidance for the full year.