Historic Japanese sporting brand, Mizuno, was losing ground to its younger competitors even prior to 2020 and the COVID-19 pandemic exacerbated an already worrying situation. According to data presented by Safe Betting Sites, Mizuno’s operating income dropped by over 40% in 2020 to just $34.5M which led to a net income decrease of over 20%.
Mizuno Suffers over 40% Loss in Operating Income
Mizuno is one of Japan’s most historic brands and was founded in 1906. The company produces sports accessories, apparel and equipment and reached international success in the 1960’s. More recently, Mizuno has shown a decline owing to the strength of sporting giants such as Nike and ADidas who have dominated that sports industry.
2020’s pandemic proved significant for Mizuno as it exacerbated a decline that has slowly manifested itself in recent years. Mizuno’s operating income fell by an estimated 41% to just $34.5M in 2020 compared to $58.4M in 2019. In the three-year period from 2017-2020 Mizuno experienced a CAGR of -22.91%.
The significant decrease in operating income meant that Mizuno’s net income for 2020 was just at $33.57M – 21% lower than 2019’s figure. From 2018-2020 Mizuno’s net income experienced a -21.24% CAGR.
Revenue for Mizuno down 13% in 2020; Footwear Category Down By Almost $100M
Mizuno’s worldwide revenue also experienced a significant decrease in 2020 when the company earned $1.36B – 13% lower than 2019’s revenue. 2020’s revenue was also the lowest recorded revenue in the reporting period from FY2007 – FY2020.
Mizuno’s footwear category experienced the largest decrease in sales among the company’s product categories in 2020. In 2019 Mizuno’s footwear category generated the largest share of total sales with $460.9M in sales but decreased by 20.5% to just $366.58M – almost a $100M decrease.
Apparel had the largest share of sales in 2020 after generating $433.7M – just under a 4% decrease from 2019. Mizuno’s two other product categories; Equipment and Services, also faced a combined decrease in sales of over $100M.
Rex Pascual, Sports Editor at Safe Betting Sites, commented:
“Mizuno was already showing signs of decline pre-pandemic but COVID-19 complicated matters even more for the Japanese sporting brand. That being said, the pandemic may make it seem the situation is worse for Mizuno than it actually is, as the company itself is confident of strong rebound in the coming years after some prudent business decisions in its various markets.”
Robert is a professional writer and researcher informed by a global perspective that allows him to uniquely analyse numbers and convey them in a relatable way. He specialises in the area of Sports and eSports, as well as having an eye for the latest Financial and Technological trends. Well versed in SEO and other aspects of digital marketing, Robert puts his skills to good use as the owner of a successful writing business in The Netherlands.
