Mizuno recorded revenues of ¥81.3 billion (€804.3m-$1,023m) in the six months ended Sept. 30, up by 4.2 percent from the same period of the previous fiscal year. Operating profit was down by 31.6 percent to ¥3.0 billion (€29.7m-$37.7m), due to an increase in selling, general and administrative expenses attributable to big investments on the Olympics and increased purchasing costs. Ordinary profit was ¥2.6 billion (€25.7m-$32.7m), down by 33.4 percent, and net income was ¥1.7 billion (€16.8m-$21.4m), down by 23.7 percent.
Sales of footwear, especially running and indoor shoes, and apparel remained strong throughout the first half. Overall sales increased in Japan and the U.S. on a currency-neutral basis, despite a difficult market environment, with a recovery in the golf business and the new contribution of Senoh Corporation, which became part of Mizuno in July.
In Europe, sales declined by 8.1 percent in yen and by 1.6 percent on a currency-neutral basis, in a difficult economic environment. The golf market shrank, partly due to bad weather. Mizuno pointed out that its Wave Precision 13 running shoe was the Editor's Choice in the German edition of Runner's World. Furthermore, Mizuno took advantage of the London Olympics to expand in indoor sports such as handball and volleyball. It set up a Mizuno Performance Center in London during the Olympics, which was visited by a total of 9,000 people.
In the Americas, sales rose by 7 percent in constant currencies, with sales of running shoes climbing by 19 percent. Mizuno's running shoes for entry runners, active runners and elite runners all won awards from running magazines, which helped promote high-priced shoes. In golf, demand for custom fitting continued to increase.
In Japan, Mizuno's sales went up by 6.3 percent, with running shoes driving the growth. Sales of walking shoes remained strong, backed by growing health consciousness. The golf business was driven by the strong performance of custom fitting. The acquisition of Senoh also contributed to the increase in domestic sales.
By product, global sales of footwear and golf products grew by 8.2 percent and by 1.2 percent, respectively. Aggregate sales of footwear and apparel for outdoor, tennis, training, and martial arts rose by 16 percent. Sales of baseball products were down 2.5 percent.
The outlook for full financial year remains unchanged. Mizuno predicts a net income of ¥3.8 billion (€37.6m-$47.8m) on sales of ¥167 billion (€1.65bn-$2.1bn).