Yonex, the Japanese brand of racquet and golf products, saw its revenues decline by 19 percent to ¥13,893 million (€111.8m-$130.9m) in the second fiscal quarter ended Sept. 30. Europe fell by 57 percent to ¥234 million (€1.9m-$2.2m), as many sports facilities remained closed over the pandemic. Badminton sales declined across the region, while in Germany, tennis sales recovered from May onward. In North America, sales tumbled by 51 percent to ¥244 million (€2.0m-$2.3m) because of sluggish sales of badminton equipment and apparel.
Revenues in Japan dropped by 21 percent to ¥8,690 million (€69.9m-$83.1m), but sales in the rest of Asia decreased by “only” 6 percent to ¥4,577 million (€36.8m-$43.8m), thanks to the recovery of the Chinese market, where e-commerce gained 30 percent, partly because Yonex opened online stores on JD.com and WeChat.
The company’s gross margin dipped by 1.0 percentage point to 43.2 percent, because of the lower sales, offset by cuts in advertising, which reduced SG&A expenses by 20 percent. The group still managed to raise its net income by 8 percent to ¥1,206 million (€9.7m-$11.4m).
For the full year, the company kept its guidance unchanged, with sales expected to decline by 19 percent. It anticipates that the recovery in badminton sales will require more time because of the ongoing pandemic. Advertising expenses are set to increase with the implementation of aggressive marketing strategies to invigorate the sports market and the resumption of sports activities.