MIZUNO CORPORATION

Business Details

This segment covers the Mizuno Group's domestic business. Its core focus is the manufacture and sale of Competitive Sports Products (Football, Baseball, Golf, etc.) including football, golf, baseball, volleyball, and racket sports products, while also expanding into Sports Style Shoes, the Work Business (Working Products), and lifestyle products. It also handles Sports Facility Construction, contracted operation of sports facilities, the school business, and sports equipment manufacturing (Senoh Corporation, etc.). Handled by the Company and its domestic subsidiaries, this is the largest segment, accounting for approximately 59.9% of the Group's total net sales to external customers.

Recent Overview

Both net sales and operating income reached record highs, with DTC expansion contributing to margin improvement

In the Japan segment for FY2026 (ending March 2026), net sales reached ¥155,152 million (up 5.3% year on year) and operating income reached ¥15,218 million (up 14.7% year on year), both record highs. Football, golf, Sports Style Shoes, and the Work Business all performed well. In baseball, sales of products related to cheering on national teams in global tournaments, leveraging sponsorship rights, expanded. Direct sales through DTC channels, centered on Sports Style Shoes, increased, boosting the gross profit margin.

Key Products

Growth Drivers

• Strong domestic sales of competitive sports products such as football, golf, and baseball (in baseball, products related to cheering on national teams in global tournaments expanded)
• Improved gross profit margin driven by expanded sales of Sports Style Shoes through DTC channels (owned e-commerce and directly operated stores)
• Continued growth of the Work Business (diversification into non-sports fields)
• Expansion of the sports facility operation business
• Strengthened technological and product development capabilities centered on the innovation center "MIZUNO ENGINE"

Risks

• Downward pressure on profit from foreign exchange factors (impact on imported raw materials and overseas procurement costs)
• Maturation of the domestic sports market and intensifying competition (particularly a slowdown in outdoor sports markets such as golf)
• Impact of price increases on personal consumption (risk of deteriorating domestic consumer sentiment)
• Risk of impairment of fixed assets
• Risk of fluctuations in orders received for sports facility construction

Business Details

The Europe segment is responsible for sales of sports shoes, sportswear, golf products, and lifestyle products, among others. The Company's European branch and local subsidiaries operate as independent management units, formulating and executing comprehensive strategies for each region. Business reorganization to convert the European branch operations into a subsidiary was implemented effective January 1, 2025, and the fiscal year under review was the first year with a full 12-month contribution. Golf and Sports Style Shoes grew significantly, while running and indoor shoes also performed steadily.

Recent Overview

Golf and Sports Style Shoes drove both net sales and operating income to record highs

In the Europe segment for FY2026 (ending March 2026), net sales reached ¥30,793 million (up 29.7% year on year) and operating income reached ¥1,410 million (up 107.8% year on year), both record highs. This includes the effect of the fiscal period difference, as the European branch's accounting period in the prior fiscal year was 9 months (April to December), whereas the current fiscal year reflects a full 12-month contribution following the subsidiary conversion. While football fell short of plan due to intensifying competition, golf and Sports Style Shoes grew significantly, and running and indoor shoes also performed steadily. Exchange rates moved in the direction of yen depreciation, with the euro at ¥169.16 (versus ¥163.79 in the prior fiscal year) and the British pound at ¥197.98 (versus ¥195.75 in the prior fiscal year).

Key Products

Growth Drivers

• Continued significant growth in golf products
• Expanded sales of Sports Style Shoes
• Steady performance in running and indoor shoes
• Strengthened business structure through the January 2025 conversion of the European branch into a subsidiary, with a full 12-month contribution
• Boost to yen-denominated sales from the depreciation of European currencies against the yen

Risks

• Foreign exchange fluctuation risk (British pound, euro, Norwegian krone, etc.)
• Risk of falling short of plan due to intensifying competition in the football market
• Uncertainty in the European economy and the impact of price increases on personal consumption
• Spillover effects on the European economy from U.S. trade policy and geopolitical risk
• Risk of slowing growth rates once the year-on-year comparison effect from the fiscal period difference (9 months in the prior year versus 12 months in the current year) fades

Business Details

The Americas segment manufactures and sells sports shoes, sportswear, baseball products, and golf products, among others. Its core business is golf (particularly forged irons), and it has also earned high customer trust through its Custom Fitting Service. The majority of sales come from the United States. Golf continued to perform well, with sales reaching a record high, while cost increases from reciprocal tariffs weighed on profit.

Recent Overview

Net sales reached a record high, but operating income fell 12.4% due to increased costs from reciprocal tariffs

In the Americas segment for FY2026 (ending March 2026), the core golf business continued to perform well, with net sales to external customers reaching a record high of ¥37,748 million (up 4.9% year on year). On the other hand, cost increases from U.S. reciprocal tariffs directly weighed on profit, and operating income declined to ¥2,423 million (down 12.4% year on year). Exchange rates moved slightly in the direction of yen appreciation, with the U.S. dollar at ¥150.40 (versus ¥151.44 in the prior fiscal year) and the Canadian dollar at ¥107.31 (versus ¥110.58 in the prior fiscal year).

Key Products

Growth Drivers

• Continued high product ratings for golf products centered on the mainstay forged irons, and customer retention through the Custom Fitting Service
• Sales growth from the continued strong performance of the golf business (reaching a record high again in FY2026, ending March 2026)
• Earnings diversification through increased sales of competitive sports products such as volleyball
• Stable demand base and improving brand recognition in the North American market

Risks

• Cost increases from reciprocal tariffs (U.S. tariff and trade policy) directly weighing on profit (the primary cause of the 12.4% decline in operating income in FY2026, ending March 2026)
• A slowdown in the expansion of the golf market: the growth of the outdoor personal sports market that had continued since the COVID-19 pandemic appears to be leveling off, posing a risk of slowing growth in this core category
• Foreign exchange fluctuation risk: changes in the yen conversion rates for the U.S. dollar and Canadian dollar directly affect net sales and profit
• Risk of a deteriorating business environment due to geopolitical risk and uncertainty over U.S. trade policy
• Risk of supply chain disruption due to logistics delays and other factors

Business Details

Local subsidiaries in South Korea, Taiwan, Hong Kong, China, Singapore, Australia, and elsewhere operate as independent management units. In addition to manufacturing and selling sports shoes, sportswear, baseball products, golf products, and lifestyle products, the segment also handles Sports Facility Construction. Running, football, and Sports Style Shoes are positioned as growth areas, and while all sales subsidiaries in the region achieved increased sales on a local currency basis, a slowdown in the South Korean golf market weighed on profit.

Recent Overview

All subsidiaries achieved increased sales on a local currency basis, but operating income fell 11.7% year on year due to a slowdown in the South Korean golf market

In FY2026 (ending March 2026), all sales subsidiaries within the Asia & Oceania region achieved increased sales on a local currency basis, and net sales reached a record high of ¥35,351 million (up 6.1% year on year). On the other hand, this was offset by a decline in sales and profit in the high-margin golf category due to a slowdown in the South Korean market, and operating income declined to ¥3,565 million (down 11.7% year on year). Running, football, and Sports Style Shoes continued to see expanded sales. On the foreign exchange front, the South Korean won and Australian dollar depreciated against the yen, creating headwinds for earnings.

Key Products

Growth Drivers

• Continued expansion of the football business in South Korea and Southeast Asia
• Increased sales of Sports Style Shoes (capturing lifestyle demand)
• Positioning of running products as a growth area, with expanding sales
• A base of increased sales on a local currency basis across all sales subsidiaries in the region
• Improved profitability through strengthened sales via DTC channels (owned e-commerce and directly operated stores)

Risks

• Declining profitability due to a slowdown in the South Korean golf market (the primary cause of the 11.7% year-on-year decline in operating income in FY2026, ending March 2026)
• Risk from fluctuations in the exchange rates of various regional currencies against the yen (impact of the South Korean won, Australian dollar, Chinese yuan, etc.)
• Uncertainty in the regional economy due to the impact of U.S. tariffs and trade policy and geopolitical risk
• A slowdown in the expansion of outdoor sports markets such as golf that had continued since the COVID-19 pandemic
• Risk of impairment related to goodwill balance of ¥756 million (as of end of FY2026, March 2026)