Asics America Group, which includes United States, Brazil and Canada, announced net sales rose 11.2 percent in the nine months through Dec. 31. Net income increased 10.2 percent while operating income rose 27.1 percent.
This nine-month improvement was largely driven by strong sales in the footwear category, with both running and tennis footwear reporting significant sales growth. Training footwear was another strong area of growth for the brand. Asics America Group expects to show continued growth this year and is on track to reach its billion dollar sales goal by 2014.
At Asics, we all share the same passion and commitment to outstanding performance and constant improvement, said Asics America Group President and CEO Kevin Wulff, in a statement. This mentality pushes us to reach our targets, expand our business offerings and will enable us to become a billion dollar region by 2014. Our innovative team, ever-expanding line of products, and strong growth in footwear and apparel categories for running and tennis are the key components to our continued success.
Companywide, Asics Inc. revenues rose 2.3 percent to ¥190.5 billion. Operating income declined 2.6 percent to ¥16.4 billion, net income rose 42.9 percent to ¥12.5 billion.
In the Americas, sales climbed 9.6 percent to ¥51.3 billion and was ahead 11.2 percent on a currency-neutral basis. Operating income reached ¥4.6 million, up from ¥3.7 million a year ago.
In its home region, Japan’s sales reached ¥80.1 billion, up from ¥75.5 billion a year ago. Operating profits were flat at ¥2.9 billion.
In Europe, sales declined to ¥48.7 billion from ¥50.1 billion, operating profits were ¥6.6 billion, down from ¥7.6 billion. In the East Asia region, sales were ¥9.6 billion, down from $9.9 billion; operating profiits eased to ¥781 million from ¥955 million. In the Oceanic region, sales improved to ¥8.2 billion from ¥7.4 billion; operating profits rose to ¥1.77 billion from $1.75 billion.
In its statement, Asics management stated:
“In the third quarter of fiscal 2013 (cumulative from April 1, 2012 to December 31, 2012), the outlook of the global economy remained uncertain mainly because of the economic slowdown in Europe due to its prolonged sovereign debt problems, the financial problem in the US and concerns of slowing economic growth in emerging nations. The Japanese economy, despite having support from earthquake recovery demand, still faced difficult conditions due to the effects of decreased exports, deflation and other factors.
In the sporting goods industry, an interest in sport remained at a high level owing to rising health consciousness on the back of a running boom and other factors, but business conditions remained challenging.
Under these conditions, the Asics Group continued its efforts to reinforce and expand its business on a global scale based on the Five-Year Strategic Plan, ��Asics Growth Plan (AGP) 2015.
While making efforts to strengthen the Group��s lineup such as launching GEL-Nimbus 14 and GT-2000, the high-function, global model running shoes onto the market and expanding the lineup of running apparel, the Asics Group took actions to heighten the value of the Asics brand and enhance the corporate image. These included supporting marathon events held in different parts of the world including Paris, Gold Coast, Singapore and Kobe, and supplying its products used by athletes representing their countries in various events at the Games of the XXX Olympiad, London 2012.
In the baseball business, the Asics Group consolidated all of its baseball products under the Asics brand and started merchandising them, focusing on high grade products.
On the sales front, the Asics Group strived to expand sales through such measures as opening directly managed sales venues in places such as Brazil, the US and Australia in addition to flagship stores of the Asics brand in London, Barcelona and Kobe, and a directly managed store of the HAGLÖFS brand in Tokyo.
Furthermore, the Asics Group proceeded to split its businesses in Japan from the global headquarters and streamline and consolidate its Japanese domestic sales subsidiaries. Through these moves, it is aimed for the Asics Corporation, as the global headquarters, to carry out business management focused on global market trends and strengthen its product development capability, which is a source of competitiveness, and for the businesses in Japan to strengthen and expand their marketing and sales functions.
In the third quarter of fiscal 2013, consolidated net sales increased 2.3% to ¥190,499 million. Domestic net sales increased 1.0% to ¥63,546 million mainly due to the strong sales of running shoes notwithstanding the weak sales of baseball wear and equipment affected by the unity of Asics brand.
Overseas sales increased 2.9% to ¥126,952 million due to the effect of foreign exchange rates notwithstanding the strong sales of running shoes in the Americas and Europe.
Gross profit decreased 0.3% to ¥81,670 million mainly due to an increase in purchasing costs, notwithstanding an increase in net sales. Selling, general and administrative expenses increased 0.2% to ¥65,273 million primarily due to an increase in personnel expenses caused by an increase in retail stores, notwithstanding a decrease in advertising expenses. As a result, operating income fell 2.6% to ¥16,397 million. Ordinary income increased 10.3% to ¥16,944 million mainly due to the recording of exchange gain. Net income for the third quarter increased 42.9% to ¥12,519 million due to the recording of tax refund and interest on refund arisen from transfer pricing taxation.”
