A recovery from year-ago supply chain disruptions coupled with strong sales growth outside Japan contributed to record Q1 operating income for Mizuno. Total revenues, bolstered by strong gains in golf, baseball, and soccer, rose by 24 percent to ¥57.2 billion (€383.2m) from ¥46.2 billion for the period ended June 30.
Operating income increased by 41 percent to ¥5.3 billion (€35.5m) from ¥3.8 billion as net income expanded by 33 percent to ¥4.7 billion (€31.5m) from ¥3.5 billion. Gross margin declined by 230 basis points to 40.0 percent from 42.3 percent.
Mizuno benefits from stronger contributions from regions outside Japan
The group’s ratio of sales outside of its home market rose by 740 basis points year-over-year to 43.1 percent of all revenues. Golf remained strong and soccer sales grew globally.
The EMEA had the largest year-over-year percentage sales gain at 51.3 percent to ¥6.6 billion (€44.2m) from ¥4.4 billion. Asia/Oceania Q1 revenues increased by 50.9 percent to ¥7.6 billion (€50.9M) and sales in the Americas were 46.7 percent higher year-over-year at ¥10.4 billion (€69.7m).
Meanwhile, in the home Japan market, helped by strong results in the baseball, soccer, and work categories, Q2 sales jumped by 9.6 percent to ¥32.6 billion (€218.4m).
Footwear still strongest category
Footwear sales finished 46 percent higher year-over-year to ¥18.0 billion (€121.0m), aided by a recovery from the year-ago supply chain disruption. Work and non-sports contributed to a 14 percent increase in apparel sales to ¥15.0 billion (€100.5m).
Equipment sales, led by baseball and golf, grew 13 percent year-over to ¥15.7 billion (€105.0m) and service/others revenues rose by 23 percent to ¥8.5 billion to €57.0 million.
Mizuno Q1 results in key sports segments
Running recovered from year-ago supply chain disruptions to post 53 percent sales growth to ¥6.9 billion (€46.2m). Baseball revenues rose by 21 percent to ¥11.6 billion (€75.1m) and golf sales ticked up by 12 percent to ¥9.9 billion (€66.3m).
Elsewhere, soccer sales increased by 83 percent year-over-year to ¥3.9 billion (€26.1m). Indoor (volleyball, badminton, table tennis, basketball) gained 20 percent to ¥3.3 billion (€22.1m) and work business sales improved 38 percent to ¥3.0 billion (€20.1m).
