Asics Inc. reported net earnings climbed 19.6 percent in the nine months ended Dec. 31 on a 25.1 percent sales gain, benefiting from a weakening yen and strength in running shoes worldwide. The company also raised its forecast for the year for both sales and earnings.
The company does not break out quarterly results. Subtracting out six month results from nine month figures indicates that sales in the third quarter rose 32.4 percent to ¥84.6 billion ($834.4 mm) from ¥63.9 million. Operating profits jumped 79.6 percent to ¥9.7 billion ($95.7 mm) from ¥5.4 billion. Net income gained 5.2 percent to ¥7.05 million ($69.5 mm) from ¥6.7 million.
In the Americas region, sales in the nine months increased 37.1 percent to ¥70.5 billion ($693.8 mm). Sales increased 13.4 percent on a currency-neutral (C-N) basis, due to the strong sales of running shoes. Segment operating income jumped 76.4 percent and grew 45.9 percent on a C-N basis to ¥8.2 billion ($80.7 mm), mainly due to the improvements of the cost of sales ratio.
In the third quarter, sales in the Americas region climbed 45.2 percent to ¥24.1 billion ($237.7 mm) from ¥16.6 billion. Operating profits grew 114.3 percent to ¥3.0 billion ($29.6 mm) from ¥1.4 billion.
In other major regions, sales in Europe increased 36.4 percent to ¥66.4 billion ($653.4 mm) and 10.0 percent on a C-N basis, thanks to the strong sales of running shoes. Segment income increased 19.4 percent to ¥7.9 billion ($77.7 mm), but decreased 3.7 percent on a C-N basis, mainly owing to the effect of foreign exchange rates on purchasing costs and an increase in SG&A expenses due to new openings of directly managed stores.
In the third quarter, sales in the Europe area rose 49.7 percent to ¥26.5 billion ($261.4 mm) from ¥17.7 billion. Operating profits reached ¥3.6 billion from ¥2.9 billion ($28.6 mm), a gain of 24.1 percent.
Sales in Japan were ¥81.97 billion ($806.7 mm) and segment income was ¥909 million ($9 mm). The company said that since it changed its reportable segment in Japan Area effective from the fourth quarter of fiscal 2013, year-on-year comparisons were not provided.
For the full fiscal year through March 31, Asics now expects companywide sales of ¥327 billion, up 25.7 percent over the prior fiscal year. Operating income is expected to reach ¥25.5 billion, representing a 36.6 percent gain. Net income is expected to reach ¥15 billion, up 8.9 percent. When it reported six-month results on Nov. 6, it projected revenues for the year to rise 21.1 percent, operating income to grow 31.3 percent, and net income to increase 5.3 percent.
