Weak sales in Japan and Asia in the third fiscal quarter ended on Dec. 31 have led Mizuno to lower its guidance for the full financial year. It now expects sales of 175,000 million yen (€1.5bn-$1.6bn) down from a previous forecast of ¥185,000 million, and net income of ¥5,200 million (€43.7m- $47.8m), against an earlier projection for ¥5,800 million.
No specific data were given about the third quarter. Reporting on the first nine months of its financial year, the Japanese company said its revenues were down by 3.9 percent to ¥122,700 million (€1.0bn-$1.1bn) from the same period a year ago, while the gross margin declined by 4.4 percentage points to 50.9 percent and the operating margin fell by 0.2 percentage points to 3.4 percent. Net earnings nevertheless rose by 11.3 percent to ¥3,200 million (€26.9m-$29.2m).
In Japan, Mizuno’s revenues decreased by 5.0 percent to ¥83,000 million (€697.4m-$756.3m) over the nine-month period. The company attributed its weak sales in the sporting goods sector to a shrinking domestic market. However, revenues from sports facilities and services were strong.
In the EMEA region, the group saw some improvements in sales of golf clubs, running shoes and indoor-court shoes. Sales advanced in the region by 1.8 percent to ¥11,400 million (€95.8m-$103.9m).
In the Americas, Mizuno’s revenues jumped by 8.6 percent to ¥15,200 million (€127.7m-$138.5m), boosted by higher sales of golf clubs and balls as well as running shoes. The growth was partly due to a reorganization of operations conducted in the previous year in this region.
In the rest of Asia and Oceania, Mizuno’s sales fell sharply by 12.6 percent to ¥13,100 million (€110.1m-$119.4m) because of the boycott of Japanese products in South Korea and the conversion of the company’s own retail business in China to a licensing model.
In terms of products, footwear sales were down by 4.7 percent to ¥36,500 million (€306.7m-$332.5m), and apparel sales dropped by 7.8 percent to ¥35,600 million (€299.2m-$324.3m). Equipment inched down by 0.4 percent to ¥28,500 million (€239.5m-$259.6m), and the Service/Other segment was also slightly down by 0.5 percent to ¥22,100 million (€185.7m-$201.3m).
