Asics America Surpasses $1 Billion Target in 2014

February 26, 2015
SGB Update

Asics America Group, which includes the United States, Brazil, Canada and Mexico, announced that it surpassed $1 billion in net sales for the first time in 2014. Sales reached $1.1 billion, up 14.9 percent year on year.

Operating profit also rose a healthy 20.1 percent year on year.  This is the third year in a row Asics America has shown sustained growth and profitability, a testament to the brand's strength in the marketplace.

Driven by fitness trends, including increased participation in running and jogging in both traditional and non-traditional events*, running footwear led the growth with a rise of 11.7 percent. Sales in performance running footwear were headlined by the popular GT-2000 2, GEL-Kayano 21, GEL-Nimbus 16 and GEL-Cumulus 16.  Further, Asics launched the entire new Natural33 Collection, expanded the Lite-Show collection and expanded the Kids Collection, which included toddlers for the first time. Focused on innovation, Asics also introduced two new technologies in running footwear this year, the FluidFit Upper and the FluidRide Midsole 2.0.

“I couldn't be prouder of the phenomenal sales growth achieved by the Asics America Group in 2014,” said Asics America Group President and CEO, Kevin Wulff. “We continue to lead the way in performance running footwear, gain substantial traction in apparel and in newer categories such as training, volleyball and tennis, and are already on pace for a strong 2015. The running industry is growing and transforming in terms of the way people are engaging with the sport, and runners and fitness enthusiasts alike continue to choose Asics because they trust our superior performance products.”

Categories such as Training and Volleyball also saw expansive high double-digit growth last year, as did the Asics sports lifestyle footwear category, which includes Onitsuka Tiger.  The category for Asics was up an astonishing 48 percent versus last year.

The iconic GEL-LYTE III, celebrating its 25th anniversary in 2015, was another lifestyle super-star that contributed to the outstanding growth in the sports lifestyle category.

Apparel and accessories continued to exceed expectations and surpassed projections by double and triple digits. The running apparel showed the strongest growth up nearly 75 percent over last year. Socks and headwear sparked significant growth in accessories with strong new colors and prints to complement the apparel collection to create complete head-to-toe looks. Expansion of the Quick Lyte® and Invasion styles were at the forefront of sock sales growth, as was the Kayano Single Tab.

Asics expanded the product range in its popular Accelerate Hope Cancer Awareness Collection for the third straight year, introducing the brand to new customers eager to support a good cause by lacing up in the special edition product. Asics donated more than $400,000 to men's, women's and children's cancer charities through the program.

In 2014, Asics America opened 11 new retail stores including a new flagship location on 42nd Street in New York City's Times Square, as well as Scottsdale, AZ, Chicago, IL, Skokie, IL, Paramus, NJ, Boston, MA, Roseville, CA, Santa Clara, CA, San Francisco, CA, San Diego, CA and San Juan, Puerto Rico. Asics America plans another 10 store openings this year.

Asics was recognized with the following industry awards in 2014:

  • Best Debut, Asics GEL-Pursue™, Runner's World, Fall 2014
  • 2014 Plus Award for Running Footwear Design, Footwear Plus
  • 2014 Top 10 Shoes – Asics Super J33™ (no. 7), The Running Network
  • 2014 Top 10 Shoes – Asics GEL-DS Racer™ (no. 9), The Running Network

Also of note, Asics Corporation has changed its fiscal year. Because of the change in the accounting period, for the fourth-quarter of the year ended December 2014, the domestic group companies (except Haglofs Japan) cover 9 months from April 1 to December 31, and overseas group companies (including Haglofs Japan) cover 12 months from January 1 to December 31.

For more information refer to the following documents:

1) Summary of the Report for the Fiscal Year Ended December 31, 2014
http://corp.asics.com/en/investor_relations/library/financial_data

2) Consolidated Financial Summary for the Fiscal Year Ended December 31, 2014
http://corp.asics.com/en/investor_relations/library/financial_summary

* According to the National Sporting Goods Association (NSGA), total
running and jogging participation in 2013 was 42 million, up 5 percent
from 40 million in 2012. Since 2009, participation is up 30 percent,
with men up 14 percent and women up 50 percent.  According to Running
USA, race participation has increased 61 percent since 2009, attributed
largely to training programs, family-centered community events, color
runs, mud runs, obstacle runs, and running series. In just five years
(2009-2013), participation in non-traditional running events in the U.S.
grew from 100,000 to 4,000,000.

Asics America Surpasses $1 Billion Target in 2014

SGB Update

Asics America Group, which includes the U.S., Brazil, Canada and Mexico, surpassed $1 billion in sales for the first time in 2014. Sales reached $1.1 billion, up 14.9 percent year on year.

Operating profit rose 20.1 percent year on year, according to a statement from Asics America. The performance represented the third year in a row Asics America showed sustained growth and profitability.

Driven by fitness trends, including increased participation in running and jogging in both traditional and non-traditional events, running footwear led the growth with a rise of 11.7 percent. Performance running was led by the GT-2000 2, GEL-Kayano 21, GEL-Nimbus 16 and GEL-Cumulus 16. Also contributing to the gains was the launch of the Natural33 collection, expansion of the Lite-Show collection and an expanded Kids Collection, which included toddlers for the first time. Two new technologies in running footwear, the FluidFit Upper and the FluidRide Midsole 2.0, supported the category.

“We continue to lead the way in performance running footwear, gain substantial traction in apparel and in newer categories such as training, volleyball and tennis, and are already on pace for a strong 2015,” said Asics America’s President and CEO, Kevin Wulf. “The running industry is growing and transforming in terms of the way people are engaging with the sport, and runners and fitness enthusiasts alike continue to choose Asics because they trust our superior performance products.”

Outside of Running, Training and Volleyball also saw “expansive high double-digit growth” last year. The sports lifestyle footwear category, which includes Onitsuka Tiger, jumped 48 percent. GEL-LYTE III, celebrating its 25th anniversary in 2015, was a notable contributor to sports lifestyle gains.

Apparel and accessories surpassed projections by double and triple digits. Running apparel vaulted nearly 75 percent over last year. Socks and headwear sparked significant growth in accessories with strong new colors and prints. Expansion of the Quick Lyte and Invasion styles were at the forefront of sock sales growth, as was the Kayano Single Tab.

Asics expanded the range in its Accelerate Hope Cancer Awareness Collection for the third straight year, donating more than $400,000 to cancer charities through the program.

In 2014, Asics America opened 11 new stores including a flagship on 42nd Street in New York City's Times Square, as well as locations in Scottsdale, AZ, Chicago, IL, Skokie, IL, Paramus, NJ, Boston, MA, Roseville, CA, Santa Clara, CA, San Francisco, CA, San Diego, CA and San Juan, Puerto Rico. Another 10 are planned this year.

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