Asics reported earnings fell 70.7 percent in the six months ended June 30 as sales slid 5.4 percent.
Sales dropped to ¥192.8 billion from ¥203.7 billion. Net income reached ¥3.42 billion versus ¥11.7 billion. Operating income slumped 47.2 percent to ¥8.5 billion.
In Japanese region, sales decreased 3.6 percent to ¥61.6 billion due to reduction of the lines of sportswear products with low profit margins despite strong sales of Onitsuka Tiger shoes. Segment income decreased 47.1 percent to ¥2.36 billion due to the effect of the decline in sales.
In the American region, sales decreased 22.4 percent (a decrease of 19.9 percent using the previous fiscal year’s foreign exchange rate) to ¥43.2 billion, due to weak sales in the U.S. Segment loss amounted to ¥560 million due to the effect of the decline in sales despite an improved cost of sales ratio.
European region sales increased 4.2 percent (a decrease of 3.0 percent using the previous fiscal year’s foreign exchange rate) to ¥52.4 billion, due to steady sales in certain emerging-market countries. Segment income decreased 19.0 percent (a decrease of 24.5 percent using the previous fiscal year’s foreign exchange rate) to ¥2.9 billion, mainly due to increased costs in line with the expansion of own retail stores.
Oceanian/Southeast and South Asian regions sales decreased 6.2 percent (a decrease of 6.2 percent using the previous fiscal year’s foreign exchange rate) to ¥13.6 billion due to weak sales in Australia despite strong sales in Southeast and South Asian regions. Segment income decreased 11.4 percent (a decrease of 11.4 percent using the previous fiscal year’s foreign exchange rate) to ¥2.1 billion due to the effect of the decline in sales despite an improved cost of sales ratio.
East Asian region sales increased 6.8 percent (an increase of 3.7 percent using the previous fiscal year’s foreign exchange rate) to ¥26.8 billion due to the strong sales of running shoes and Onitsuka Tiger shoes particularly in China despite the weak sales in South Korea. Segment income decreased 24.0 percent (a decrease of 26.3 percent using the previous fiscal year’s foreign exchange rate) to ¥3.2 billion, due to vigorous advertising investment in China and the effect of lower profit in South Korea.
Other business sales increased 5.6 percent (an increase of 4.1 percent using the previous fiscal year’s foreign exchange rate) to ¥4.0 billion, due to steady sales of outdoor wear and other items under the HAGLÖFS brand and the effect of the foreign exchange rate. Segment loss was ¥364 million.
