Mizuno: Deep dive: Focusing on growth in non-sports areas

Research evidence excerpt

Mizuno: Deep dive: Focusing on growth in non-sports areas

Global Markets Research

7 July 2026Mizuno

8022.T 8022 JP / EQUITY: JAPAN RETAILING

Deep dive: Focusing on growth in non-sports areas Rating

Starts at Buy

Growth in sports areas such as running, golf, and soccer, and in non- Target price

sports areas such as sports style and work products Starts at JPY 4,600

We assign Buy rating, focus on profit growth via strengthening of non-sports areas Closing price JPY 3,370We initiate our coverage of Mizuno with a Buy rating. We take a positive view of the 3 July 2026

company's increased growth potential as it leverages its established development

Implied upside +36.5%capabilities and brand strength in sports areas to expand into non-sports areas. We

expect profit growth to be achieved on the back of sales CAGR of around 6% through 30/3

(over the 26/3 baseline) in sports areas, which account for around 60% of sales, and sales

CAGR of around 9% in non-sports areas, which account for around 20%. We also expect

Relative performance chartstable performance in other areas, which account for the remaining 20% or so. We

forecast relatively higher sales growth for sports style products, which have a broader

customer base than sports products. In addition, work and sports style products generate

relatively high operating margins, and we expect a rise in the sales weighting of these two

categories to boost companywide margins. Given the company's stable profit growth

potential, we think the current share price does not adequately reflect its longer-term

growth potential, and think the stock looks undervalued. We expect the share price to rise

as sales growth and margin improvements in non-sports areas emerge.