Mizuno (8022) Q2 2027 earnings summary

Executive summary

• H1 FY2027 net sales, operating profit, ordinary profit and parent-attributable profit all reached interim-period records; sales and profit growth spanned regions and product categories.

• Japan Football and Golf, and overseas growth in Golf, Running, Football and Sportstyle shoes, supported results; gross margin improved with support from DTC initiatives.

Financial highlights

• H1 net sales were ¥139,089m, up 9.9% YoY; gross profit rose 14.2% to ¥60,239m and gross margin expanded 1.6pts to 43.3%.

• Operating profit rose 22.1% to ¥14,663m, with operating margin up 1.0pt to 10.5%; ordinary profit rose 20.0% to ¥15,266m.

• Parent-attributable profit increased 8.4% to ¥10,708m; net profit margin was 7.7%, down 0.1pt YoY.

• SG&A rose 11.8% to ¥45.6bn, including personnel expenses up 7.7% and advertising and promotion expenses up 16.7%.

• Comprehensive income was ¥12,518m versus ¥8,487m a year earlier.

Outlook and guidance

• FY ending March 2027 forecasts unchanged: net sales ¥280,000m, operating profit ¥25,500m, ordinary profit ¥26,500m and parent-attributable profit ¥19,000m.

• Forecast sales, operating profit and net profit margins are 9.1% and 6.8%, respectively; forecast EPS is ¥249.86 and annual dividend is ¥66/share, split evenly between interim and year-end.

• H1 results exceeded plan: sales ¥139.1bn vs ¥137bn, operating profit ¥14.7bn vs ¥13bn and net profit ¥10.7bn vs ¥10bn; forecast achievement was 49.7%, 57.5% and 56.4%, respectively.