5.25%
Wednesday, May 15, 2019
Volume 2, Issue No. 9

Mizuno Returns Americas’ to Operating Profit in FY18

After three consecutive years of operating losses, Mizuno generated a small profit of approximately $1.45 million in the Americas in FY18 despite a 13.5 percent topline decline to the equivalent $162.9 million. Regional footwear revenues declined 13 percent to $61.5 million; apparel was down 2.9 percent in yen to the equivalent of $30.8 million; and equipment sales slid 17 percent to $70.6 million. Going forward, the division of the Japanese parent will aim to expand revenues through new products and profitability by lowering fixed costs.

Overall, parent Mizuno Corp. suffered a 3.9 percent decline in FY18 revenues to $1.61 billion as the brand’s running business struggled across all regions. Annual operating profit was down 5 percent to the equivalent of $68.8 million. By segment, annual footwear sales slipped 2.6 percent to $477.7 million; apparel revenues declined 4.8 percent to $486.7 million and equipment sales fell 7.8 percent in yen to the equivalent of $357.4 million. Mizuno’s Services/Other business accounted for the remainder of FY18 revenues.

Going forward, Mizuno has an ambitious plan to grow consolidated revenues 15 percent to approximately $1.85 billion by the end of FY21 and annual ordinary profit by 43 percent over the same span to about $99.5 million.