Sport brand Mizuno’s sales down in USA and Europe as profitability improves

By

Olivier Guyot

Translated by
Nicola Mira

Published
Nov 23, 2017

Japanese sport apparel and equipment brand Mizuno improved some of its financial parameters in the first half of the fiscal year closed at the end of September 2017, though sales fell slightly compared to the same period last year, reaching JPY91.8 billion (€698 million), equivalent to a 1.5% downturn.

Mizuno grew by a small margin on its domestic market, where sales were worth JPY62.5 billion, and posted a stable performance in Asia-Pacific, with JPY10.2 billion. Sales instead decreased in America, falling from JPY13 billion to JPY11.7 billion, and in Europe, from JPY8 billion to JPY7.4 billion.

In the USA, Mizuno was affected by the slump in the sport retail business and a slow-down in the running shoe market, which a rally in the golf segment was not enough to compensate. In Europe too, golf products recovered slightly, but overall shoe sales fell, despite the strong performance of handball and volleyball products.

On the positive side for the Japanese group, its profitability has improved. Operating income posted significant gains, growing from JPY500 million to JPY3.9 billion year-on-year. In fact, excluding Asia-Pacific, the group's operational performance rallied in all regions. In Japan, full-price sales increased significantly, generating a remarkable improvement in financial indicators, while in the USA the group has totally revised its inventory policy. In Europe too, despite declining sales, Mizuno managed to grow its profitability.

The Japanese sport brand wants to better its European market position in tennis, a sport in which it sponsors German pro player Philipp Kohlschreiber, and to continue to expand its presence in indoor sports. And while Mizuno has a reputation as a sport performance brand, it also intends to explore the casual footwear segment.