Business news : Mizuno’s Americas Revenues Grow Double-Digits in Fiscal Year

Mizuno Corp. reported earnings slid in its fiscal year ended Mar. 31 due mainly to an increase in SG&A expenses and in purchasing costs. But overall footwear sales remained healthy, especially running shoes in the Americas.

Companywide, revenue totaled ¥163.7 billion ($1.6 billion) in the year, up 5.6 percent compared with the same period of the previous fiscal year. Operating profit was ¥3.6 billion ($35.2 mm), down 34.4 percent, ordinary profit was ¥4.1 billion ($40.1 mm), down 27.6 percent, and net income was ¥1.9 billion ($18.6 mm), down 38.1 percent.

In Europe, revenues were down 2.9 percent to ¥10.43 billion ($102.0 mm) and gave back 3.6 percent C-N. Operating income before taxes were down 43.9 percent to ¥304 million ($2.97 mm). The revenue declines were attributed to sluggish economies in the region. In addition to running shoes, indoor shoes such as handball shoes, remained strong in the region.

In the Americas region, sales increased 12.4 percent to ¥23.0 billion ($225.0 mm) and increased 12.4 percent C-N. The top-line gains were driven by the strength of running footwear and golf businesses. Operating profits before taxes were off 5.3 percent to ¥902 million ($8.8 mm).

Mizuno noted that the Americas region marked its third straight year of strong growth and achieved all-time high record net sales.

Sales of running business in the Americas region increased by 24 percent on a currency-neutral basis, driven by innovative new products and strong brand marketing strategies. In 2012, in US Running Specialty stores, the company was the fastest growing brand of running shoes.

Sales of golf business in the Americas region grew at a healthy rate of 7 percent on a currency-neutral basis, driven by the innovative Mizuno Performance Fitting System, world-class iron line up, and an industry leading two-day turn around on all custom orders.

Mizuno noted that it renewed a multi-year contract with USA Volleyball through 2016 Olympic Games in Rio. In addition, the agreement was expanded to include USA Beach Volleyball in competitive apparel and select accessories.

In its home market of Japan, sales were up 59.9 percent to ¥121.66 billion, ($1.2 bn) mainly attributable to Senoh Corporation, which joined the Mizuno Group in July 2012. Operating profits before taxes were down 24.1 percent to ¥2.56 billion ($25.0 mm). In golf, sales in Japan were sustained as the Custom Fitting business continued strong. Sales for running shoes and apparel products for multi-training grew in Japan.

In the Asia/Oceania segment (China/Taiwan/Australia) sales were down 4.1 percent to ¥8.55 billion ($83.6 mm) and down 5.3 percent C-N. Operating earnings were ¥53 million ($520,000), down from ¥591 million a year ago.

Companywide, Mizuno noted that it has been promoting reform since January 2013 toward globalization. Improvements are being made on all fronts from the structure, systems to actual business operations for growth.

For the fiscal year ending March 2014, the revenue forecast is ¥183.0 billion (up 11.8 percent from the same period of the previous fiscal year) and the ordinary profit forecast is ¥7.0 billion (up 70.9 percent).

The revenue forecast for Japan is ¥128.5 billion (up 5.5 percent), for Europe is ¥14.5 billion (up 39.4 percent) and for the Americas is ¥29.0 billion (up 26.0 percent).

Source Mizuno through SportsOneSource