Asics Corp raised its sales forecast for the year, but cut its earnings targets due to currency fluctuations and non-recurring charges.
The Japanese sporting goods giant now expects net income of ¥13 billion ($175 mm), down from a previously forecast of ¥21 billion. In 2014, it earned ¥22.2 billion.
In its statement, Asics said the reason for the amendment to the forecast was partly due to an extraordinary loss to be recorded of ¥5.1 billion ($43 mm), including “special extra retirement payment” associated with business structure reforms of its domestic business announced on July 1, 2015.
Operating income is expected to now reach ¥31 billion ($259 mm), down from a previous forecast of ¥33 billion, and still slightly ahead of ¥30.5 billion a year ago. Asics said the shortfall was due mainly to the effect of foreign exchange rate on purchasing cost at a subsidiary in Brazil.
Revenues are expected to reach ¥429 billion ($3.6 bn), up from a previous forecast of ¥423 billion a year ago. The new guidance translates to a gain of 21.2 percent compared to 2013 sales of ¥354.1 million. The improved sales guidance was attributed to the decreasing value of yen against major foreign currencies.
