Mizuno has reported a sales increase of 7.8 percent to ¥96.9 billion (€732.3m-$786.3m) for the first half of its financial year through Sept. 30. Footwear sales grew by 9.7 percent to ¥31.9 billion (€240.2m-$258.3m), apparel by 4.6 percent to ¥28.0 billion (€210.9m-$226.7m), equipment by 11.5 percent to ¥24.2 billion (€182.3m-$195.9m), and the construction of sports facilities and other services by 3.5 percent to ¥12.7 billion (€95.7m-$102.8m).
The company's revenues were also helped in part by the lower value of the yen, as they were up by only 3.7 percent on a currency-neutral basis. Foreign currencies had an adverse impact on operating costs outside Japan, leading the company to book a 46.6 percent decrease in operation income to ¥1,427 million (€10.6m-$11.4m) and a 16.4 percent drop in net income to ¥1,455 million (€11.3m-$12.2m).
In Europe, the Middle East and Africa, Mizuno's sales advanced by 10.2 percent to ¥8.52 billion (€64.4m-$69.1m), and they were up by 9.5 percent on a currency-neutral basis. Running shoes and indoor sports, particularly handball, drove the increase. Sales were particularly strong in Germany for the brand, which sponsored the Hamburg Marathon.
In golf, Mizuno says it captured a greater share of the market, which remained highly competitive, through its new irons. The company suffered an operating loss of ¥435 million (€3.3m-$3.5m) in the region during the six-month period, compared with a profit of ¥380 million in the year-ago period.
Sales went up by 12.6 percent in terms of yen in the Americas, reaching ¥16.3 billion (€123.2m-$132.3m), but were down by 3.2 percent in local currencies, and they generated an operating loss of ¥68 million (€0.5m-$0.6m) against a profit of ¥356 million. Volleyball and new running products sold well in the region. Sales of golf equipment recovered in the U.S.
Excluding Japan, sales grew by 25.3 percent in Asia and Oceania to ¥11.4 billion (€86.2m-$92.5m), rising by 10.6 percent in constant currencies, but the operating earnings from the region fell by 39.4 percent to ¥505 million (€3.8m-$4.1m). Sales of running shoes remained strong in China, where operating costs were reduced through the merger of the company's sales and production subsidiaries. Running apparel and functional tights performed well in Taiwan. Steady sales increases were recorded in South Korea, Singapore and Australia.
In the Japanese domestic market, Mizuno scored a 28.4 percent increase in operating income to ¥1.46 billion (€11.0m-$11.8m) on 3.5 percent higher sales of ¥60.8 billion (€459.6m-$493.4m). The progress was led by running, walking and training shoes as well as golf.
For the full financial year, the management continues to forecast total sales of ¥200 billion (€1,511.7m-$1,623.2m), operating income of ¥6 billion (€45.3m-$48.7m) and net income of ¥3.7 billion (€28.0m-$30.0m).
