Mizuno US sales plummet as retail ranks shrink
Japanese sports goods and apparel brand Mizuno has reported a slump in profit, largely due to the collapse of US retailers.
Operating income plummeted 51.4 per cent to ¥3 billion (US$26.5 million).
The “struggling” Mizuno US business lost ¥2.54 billion ($22.4 million) in the financial year to March 31 as its inventory grew due to a slowdown in the performance running market. Many sports retailers have closed outlets and some have gone into bankruptcy protection as the shift by consumers from brick-and-mortar stores to online channels accelerates.
And in South America, Brazil’s economic challenges and weakened currency also impacted sales.
In the combined Americas, sales slumped 23.4 per cent to ¥24.2 billion ($213 million) or by 16 per cent on a currency-neutral basis.
Sales declined in Asia and Oceania by about 6 per cent to ¥20.8 billion ($183 million), but when adjusted to a currency-neutral basis, actually rose by 9 per cent.
In its home market, Mizuno achieved an increase of 1.7 per cent. Global revenue fell 3. 8 per cent, gross margin decreased from 38.6 per cent to 37.5 per cent.
Mizuno makes sports equipment and clothing for golf, tennis, baseball, volleyball, football, running, rugby, skiing, cycling, judo, table tennis, badminton, boxing and athletics.