Asics Corporation Posts Solid Fiscal First Quarter on Double-Digit U.S., Europe Growth

Asics Corporation posted solid sales and earnings growth in the fiscal first quarter ended June 30 as double-digit top-line increases in the U.S. and Europe more than offset declines in Japan.

Asics reported that overall fiscal first quarter revenues rose 8.3% to ¥59.4 billion ($645 mm) from ¥54.9 billion ($564 mm) in the year-ago period.  Revenues in Japan declined 3.2% to ¥24.9 billion ($270 mm), while Europe revenues jumped 15.2% in Japanese Yen terms to ¥17.0 billion ($185 mm) and U.S. revenues increased 19.8% in U.S. dollar terms to $159 million (¥14.6 bn) from $132 million (¥12.9 bn) in the year-ago period.

Asics America reported in a statement that sales grew more than 17% in the first half. For the second quarter (April-June) all categories are seeing double-digit growth, which is in line with the momentum from the first quarter of 2010.

Asics America said the solid growth can be attributed to a nearly 20% increase in the apparel and accessories categories, particularly team sports. Retail distribution has expanded along with product offerings for volleyball, wrestling, track and field and a new category-field hockey. Footwear continues to maintain strong numbers with 15% growth.  Apparel is on track to reach its 20% growth for the year.

Asics said it continues to strengthen its number two market position in running footwear in the U.S. with 21% growth for the first six months of 2010.  This growth rate was 52% higher than for the running footwear category as a whole.

“We are seeing strong overall numbers for Asics America for 2010,” says Rich Bourne, President and COO, Asics America. “We continue to offer new products, expand categories and distribution in order to reach our billion dollar goal.”

Asics America more than doubled operating earnings for the quarter, posting a 138% increase in operating income to $14.7 million (¥1.36 bn) from $6.2 million (¥603 mm) in the prior-year quarter.

Asics Corporation saw net income triple for the fiscal first quarter to ¥3.44 billion ($37 mm) versus ¥1.15 billion ($11.8 mm).