For the first half ending September 30, Asics Corp. posted a double-digit gain in sales, but much like one of its major competitors in Japan, that gain failed to translate to the bottom line due to an increase in the taxes paid. The sales growth occurred mostly on the international side of the business (viz. not Japan) as sales in the land of the rising sun were relatively flat, while elsewhere they rose just over 20%.

Net sales increased 15.1% to ¥95.4 billion ($828.1 million) from ¥82.9 billion ($758.1 mm) last year. Gross margin for the company increased 120 basis points to 43.4% of net sales from 42.2% during the first half of last year. However, overall net income actually decreased 8.8% to ¥7.0 billion ($60.9 mm) for the half, from ¥7.7 billion ($70.4 mm) last year as the result of the sharp increase in taxes paid.

Regionally, sales in Japan increased 0.6% to ¥40.9 billion ($355.1 mm) from ¥40.7 billion ($372.1 mm). Overall international sales increased 28.1% to ¥58.3 billion ($505.7 million) from ¥45.5 billion ($416.2 mm) in H1 2005.

In the U.S., sales increased 40.0% to ¥22.7 billion ($196.9 mm) from ¥16.2 billion ($148.2 mm) last year, while European sales increased 20.3% to ¥30.7 billion ($266.1 mm) from ¥25.5 billion ($233.2 mm) during the first half of 2005. All other regions saw sales increase 45.5% to ¥4.4 billion ($38.5 mm) from ¥3.0 billion ($27.9 mm) last year.

Sales of footwear increased 20.7% to ¥67.6 billion ($586.9 mm) from ¥56.0 billion ($512.5 mm) during last year's half. Apparel sales increased 9.1% to ¥19.9 billion ($172.8 mm) from last year's ¥18.2 billion ($167.0 mm). Equipment sales decreased, however, down 8.3% to ¥7.9 billion ($68.4 mm) from ¥8.6 billion ($78.7 mm) last year.

Within Japan, shoe sales totaled ¥15.3 billion ($133.1 mm), a gain of 1.8% from the ¥15.1 billion ($137.9 mm) posted last year. Apparel sales in the country were ¥14.7 billion ($172.8 mm), increasing 1.9% from last year's ¥14.4 billion ($131.6 mm). Equipment sales were down 9.7% to ¥7.1 billion ($62.1 mm) from ¥7.9 billion ($72.5 mm) in H1 last year.

Internationally, footwear sales came in at ¥52.3 billion ($453.8 mm), increasing 27.7% from ¥40.9 billion ($374.6 mm) in last year's half. Apparel sales were ¥5.3 billion ($45.6 mm), up 36.0% from last year's ¥3.9 billion ($35.3 mm). Equipment sales were also up internationally, increasing 8.6% to ¥735 million ($6.4 mm) from ¥677 million ($6.2 mm).


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