The impact of restrictive measures to contain Covid-19 in Japan weighed on Mizuno’s results for the first half of its fiscal year ending on March 31, 2021. The Japanese group’s revenues declined by 22.5 percent from the year-ago period to 66.2 billion yen (€537.7m-$639.0m). The gross margin narrowed by 2.0 percentage points to 39.7 percent, while net income plunged by 95.7 percent to ¥100 million (€0.8m-$1.0m).
There was, however, a sequential improvement in the second quarter, where sales were down by 13 percent and the gross margin contracted by 0.8 percentage points to 40.0 percent, leading to a decline in the net profit of 33 percent year-on-year.
In Japan, sales were down during the first half by 22.9 percent to ¥45.2 billion (€370.0m-$436.3m). Due to Covid restrictions, revenues decreased in most categories, except for face masks and the workwear business.
In the EMEA region, sales declined by 14.1 percent to ¥6.7 billion (€54.4m-$64.6m) with good sales in golf and running, but this was not enough to offset the impact of the pandemic. The company ended with an operating loss in the region of around ¥100 million (€0.8m-$1.0m) as compared to a profit of ¥300 million in the year-ago period. Sales were flat in EMEA during the second quarter.
In the Americas, Mizuno’s revenues fell by 19.2 percent to ¥8.4 billion (€68.2m-$81.0m), with a good performance in golf as players returned to the courses in the second quarter, which led the region to score an operating profit for the first half.
In Asia/Oceania, revenues went down by 31.0 percent to ¥6.0 billion (€48.7m-$57.9m) as the brand was impacted by the boycott of Japanese products in South Korea.
In terms of products, all categories were down for the first half, with footwear dipping by 25.9 percent to ¥18.3 billion (€148.6m-$176.6m), apparel by 18.0 percent to ¥20.5 billion (€166.5m-$197.8m), equipment falling by 22.2 percent to ¥15.8 billion (€128.3m-$152.4m), and service/other by 24.0 percent to ¥11.7 billion (€95.0m-$112.9m). In the second quarter, apparel bounced back, footwear declined by 18 percent and equipment was down by 20 percent.
The management intends to continue to strengthen its teamwear and indoor sports business in Europe, while reducing fixed costs and enhancing operational efficiency. It is also planning to develop non-sports products like lifestyle footwear for the region.
