Mizuno recorded 6.1 percent sales growth to 45.2 billion yen (€352.2m-$469.9m) for the first quarter ended June 30 as compared to the previous year's quarter, with running shoes serving as a driving force behind the term's results, combined with sales increases in all other areas. With Senoh Corporation joining the group, its consolidation also served as a factor for increased revenues. Net income for the quarter was ¥1.4 billion (€10.9m-$14.6m), up by 12.4 percent, with an improvement in non-operating revenues and expenditures due to reduced foreign currency losses. Operating income fell by 8.2 percent to ¥2.5 billion (€19.5m-$26.0m), primarily due to a sustained rise in raw material and labor costs.
The company derived 70 percent of its revenues for the quarter from Japan, which recorded sales of ¥31.7 billion (€247.0m-$329.5m), up 2.7 percent over the same quarter last year. It attributed this to an expansion in the number of Japanese people participating in lifestyle sports, such as running and walking. Operating profit for Japan was ¥1.8 billion (€14.0m-$18.7m), down from ¥2.1 billion last year. The Japanese baseball market languished, while sales of gloves, spikes and uniforms performed well for the company.
The Asia/Oceania region posted revenues of ¥2.8 billion (€21.8m-$29.1) in the quarter, down by 6.1 percent from the same quarter of the previous fiscal year but up 8.5 percent on a currency-neutral basis. Operating profit was ¥170 million (€1.3m-$1.8m), as compared to ¥78 million.
In Europe, where sales in the second quarter were ¥2.6 billion (€20.3m-$27.0m), running shoes drove the overall business. Revenues on a currency-neutral basis were down by 3.8 percent because of a negative impact on the golf business from inclement weather conditions. Revenues converted into yen were up by 10.1 percent. In Europe, the share of indoor shoes for sports such as for volleyball and handball has been growing via specialty store channels, showing promising results for future business expansion. Operating profit in the European region was ¥90 million (€0.701m-$0.936m), compared with ¥119 million in the last financial year.
Revenues in the Americas were up by 3.6 percent on a currency-exchange neutral basis in the quarter to ¥8.1 billion (€63.1m-$84.2m), as running shoes and premium baseball glove products performed well. When converted into yen, revenues were up 19.1 percent on the back of a weakening yen. Operating profit from the Americas was ¥623 million (€4.85m-$6.48m), as compared to ¥646 million in the previous year's quarter. Mizuno's running products went up by nearly 6 percent in the region, but golf goods were slightly down due to the impact of low temperatures and a 15 percent decline in the number of rounds played.
For fiscal 2013, the company expects revenues at ¥183.0 billion (€1.43bn-$1.90bn), operating profit at ¥7.0 billion (€54.5m-$72.8m), and net income after tax at ¥4.2 billion (€32.7m-$43.7m). The estimate remains unchanged from that which was formerly announced on May 16, 2013.
