Mizuno reports record figures in Q1, strong growth in Europe

The 2025 fiscal year has started successfully for Mizuno, with record sales driven by a strong international football business acting as the playmaker and the workwear division in Japan providing reliable support. Quarterly sales rose to ¥63.5 billion (€371.3m), up 4.5 percent on the previous year. The gross margin improved by 0.7 percentage points year-on-year to 42.2 percent, corresponding to an increase in gross profit from ¥25.2 billion (€147.4m) to ¥26.8 billion (€156.6m). The company credits its targeted pricing strategy for this. Despite increased costs due to investments in human capital and inflation, Mizuno achieved an operating margin of 9.9 percent, which is significantly above the annual forecast of 8.7 percent.

Slight decline in operating profit

However, despite sales growth and a higher gross margin, the Japanese sports shoe and clothing manufacturer recorded a slight decline in operating profit from ¥6.5 billion (€38.0m) in Q1 FY24 to ¥6.3 billion (€36.8m) in Q1 FY25 – a decrease of 3.3 percent. The operating margin fell accordingly by 0.8 percentage points to 9.9 percent (previous year: 10.7%). The company cites its investments in human capital and the planned decline in currency gains caused by the conversion of European branches into subsidiaries as reasons for this decline. Despite this decline, however, the margin is above the annual target of 8.7 percent, which the company considers an operational success.

Net income down on previous year

Net income fell to ¥4.9 billion (€28.7m) in Q1, a decline of 5.0 percent from the previous year. The net margin was 7.7 percent, down from 8.5 percent in the previous year.

Europe sees strong growth

Mizuno achieved its strongest regional growth in Q1 FY25 in the EMEA region, with sales up 23.0 percent to ¥8.0 billion (€46.8m). This was followed by Asia/Oceania, with an increase of 8.9 percent to ¥8.9 billion (€52.0m), driven by growth in football and racquet sports as well as workwear. In the Americas, sales rose by 5.1 percent to ¥11.9 billion (€69.6m), with the golf business and new sports such as pickleball contributing particularly to growth.

Footwear leads the product mix

In addition to regional growth, the development by product category also shows where Mizuno is focusing its efforts. The footwear segment was particularly dynamic, driven by football and sports style shoes:

• Footwear: ¥21.9 billion (€128.1m), +12.0 percent
• Apparel: ¥17.5 billion (€102.3m), +4.7 percent
• Equipment: ¥16.0 billion (€93.6m), -1.1 percent
• Services/Other: ¥8.1 billion (€47.4m), -2.7 percent

Japan with stable development

Japan, the largest single market, remained virtually stable at ¥34.7 billion (€202.9m), down 0.2 percent. The work segment and sports-style shoes provided positive momentum here, while classic sports equipment declined slightly. This is in line with Mizuno’s strategy of positioning the work segment as a growth segment outside the classic sports market and transferring expertise from competitive sports to the workplace. The goal: to improve performance, comfort and safety in the workplace. With success: this segment grew by 27.5 percent to ¥4.7 billion (€27.5m) compared with the same period last year.

Forecast confirmed, strategy reaffirmed

Mizuno has confirmed its forecast for the year as a whole and continues to target sales of ¥260 billion (€1.52bn) with an operating margin of 8.7 percent. The company remains confident despite global uncertainties: “Our focus on high-growth categories such as soccer, workwear, and sports style is bearing fruit,” the report states.

Focus on international expansion

The company sees particular potential in its international expansion – and is, for example, converting European branches into subsidiaries. At the same time, targeted investments in personnel and innovation are intended to secure competitiveness in the long term. It considers the impact of inflation and currency effects to be temporary.