Asics raised its guidance for the year after reporting sales in the third quarter grew 16.0 percent with profits expanding faster. Double-digit revenue growth in the quarter was achieved in North America, Europe, Japan and Greater China.

Third-quarter figures were attained by subtracting six-month results from nine-month results.

In the quarter, sales reached ¥183,255 million ($1.2 bn) against ¥158,026 million a year ago. Operating profits rose 46.6 percent to ¥32,527 million from ¥22,195 million. Net profits grew 46.7 percent to ¥22,721 million from ¥15,484 million.

Among key regions, sales in North America in the third quarter reached ¥36,496 million from ¥31,878 million, a gain of 14.5 percent. Operating earnings in the region surged 217.3 percent to ¥4,427 million from ¥1,395 million.

In other major regions, sales in Japan reached ¥44,313 million against ¥32,831 million, representing an increase of 35.0 percent. Operating income reached ¥7,863 million compared with ¥3,219 million, up 144.3 percent.

Sales in Europe rose 17.5 to ¥51,504 million from ¥43,833 million. Operating earnings in the region climbed 20.4 percent to ¥8,815 million from ¥7,321 million.

In Greater China, sales totaled ¥25,213 million against ¥20,980 million, a gain of 20.2 percent. Operating earnings improved 24.0 percent to ¥5,624 million from ¥4,536 million.

Among major categories in the quarter, the sales gains were led by SportStyle, up 62.7 percent to ¥29,099 million from ¥17,881 million a year ago. Onitsuka Tiger’s sales reached ¥24,651 million against ¥16,577 million, a gain of 48.7 percent.

Performance running revenues totaled ¥87,374 million against ¥79,231 million, a 10.3 percent increase. Core Performance Sports sales rose 10.6 percent to ¥22,798 million from ¥20,618 million.

Nine Month Performance
In the nine months, Asics reported net sales increased 17.3 percent to ¥525,454 million due to strong sales in all categories, as well as due to the impact of currency change.

Gross profit in the nine months increased 26.7 percent to ¥290,920 million due to the impact of an increase in net sales. Gross margins improved to 55.4 percent from 51.2 percent.

Operating profit in the nine months advanced 64.0 percent to ¥91,523 million due to the impact of an increase in net sales and profit described above. Ordinary profit jumped 61.2 percent to ¥88,279 million. Profit attributable to owners of parent increased 61.2 percent to ¥64,940 million.

Asics said in its commentary, “For the nine months ended September 30, 2024, we recorded a gross margin of 55.4 percent, operating profit of ¥91.5 billion, and operating margin of 17.4 percent, all of which reached a record high for the second consecutive year. In addition, following on from the six months ended June 30, 2024, the SportStyle category and the Onitsuka Tiger category have continued to drive momentum company-wide. In particular, the SportStyle category achieved significant growth, with sales in North America region increasing by over 2 times and sales in Greater China region also increasing by approximately 2 times.”

Asics also said it plans to announce a revision of its targets in 2026 as it expects to achieve the numerical targets under its Mid-Term Plan 2026 in 2024. Asics added, “At the same time, we will also explain our SportStyle strategy, so please look forward to it.”

Category Performance in Nine Months

  • Performance Running: Net sales in the nine months increased 13.7 percent to ¥258,277 million due to the strong sales in all regions. Category profit in the nine months increased 37.7 percent to ¥61,390 million mainly due to an improvement in gross profit, as well as due to the impact of an increase in net sales.
  • Core Performance Sports: Net sales increased 6.3 percent to ¥64,884 million due to the strong sales in all regions other than Japan region. Category profit in the nine months increased 1.3 percent to ¥13,168 million due to the impact of an increase in net sales and an improvement in gross profit, despite an increase in selling, general and administrative expenses.
  • Apparel and Equipment: Net sales in the nine months increased 4.0 percent to ¥29,130 million mainly due to the strong sales in Europe region. Category profit in the nine months increased 80.5 percent to ¥3,639 million mainly due to an improvement in gross profit.
  • SportStyle: Net sales in the nine months increased 63.4 percent to ¥75,085 million due to the strong sales in all regions. Category profit in the nine months increased significantly 103.5 percent to ¥21,119 million mainly due to the impact of an increase in net sales.
  • Onitsuka Tiger: Net sales in the nine months increased 52.7 percent to ¥68,535 million due to the strong sales in all regions. Category profit in the nine months increased significantly 101.3 percent to ¥26,003 million mainly due to an improvement in gross profit, as well as due to an increase in net sales.

Regional Performance

  • Japan: Net sales in the nine months increased 21.8 percent to ¥124,191 million due to the strong sales of the Performance Running category and the Onitsuka Tiger category. Segment profit increased 85.9 percent to ¥20,877 million mainly due to an improvement in gross profit, as well as due to the impact of an increase in net sales.
  • North America: Net sales in the nine months increased 18.7 percent to ¥104,244 million due to the strong sales of the Performance Running category and the SportStyle category. Segment profit vaulted 486.1 percent to ¥11,141 million mainly due to an improvement in gross profit, as well as due to the impact of an increase in net sales.
  • Europe: Net sales in the nine months increased 17.1 percent to ¥143,101 million due to the strong sales in all categories. Segment profit increased 56.4 percent to ¥23,896 million mainly due to an improvement in gross profit, as well as due to the impact of an increase in net sales.
  • Greater China: Net sales in the nine months increased 27.5 percent to ¥78,262 million due to the strong sales in all categories. Segment profit increased 34.9 percent to ¥17,578 million mainly due to the impact of an increase in net sales.
  • Oceania: Net sales in the nine months increased 11.0 percent to ¥31,971 million due to the steady sales in all categories. Segment profit in the nine months increased 12.1 percent to ¥5,554 million due to the impact of an increase in net sales.
  • Southeast and South Asia: Net sales in the nine months increased 34.0 percent to ¥28,739 million due to the strong sales in all categories. Segment profit increased 37.6 percent to ¥6,629 million mainly due to the impact of an increase in net above.
  • Other: Net sales in the nine months decreased 6.1 percent to ¥36,271 million due to the impact of the sale of Haglöfs AB in December 2023 and its exclusion from the scope of consolidation. Segment profit increased 36.3 percent to ¥6,160 million mainly due to an improvement in gross profit.

 Outlook
Asics revised outlook for 2024 calls for:

  • Sales to reach ¥680,000 million, up 19.2 percent (15.2 percent on a currency-neutral basis) year over year. Previous guidance called for sales of ¥660,000 million, up 15.7 percent (11.9 percent on a currency-neutral basis);
  • Operating profit to reach ¥100,000 million, up 84.4 percent. Previous guidance called for operating profits of ¥95,000 million, up 75.2 percent; and
  • Net profit of ¥63,000 million, up 78.6 percent. Previous guidance called for net profit of ¥58,000 million, up 64.4 percent.

Image courtesy Asics