Led by a standout performance by Asics America, Asics Corp. reported net income rose 32.7 percent to ¥11.0 billion ($136 mm) in the fiscal year ended March 31. Consolidated sales increased 4.9 percent to ¥235.3 billion ($2.9 bn).


Domestic Japan net sales declined 5.6 percent to ¥88.04 billion mainly due to the weak sales of sportstyle shoes and athletic wear. Overseas sales increased 12.4 percent to ¥147.3 billion ($1.8 bn), thanks to strong sales of running shoes in Europe, the Americas and Australia.


In the Americas region, sales climbed 12.4 percent, or 19.8 percent in constant currencies, to ¥59.6 billion ($733 mm). Segment operating income jumped 52.2 percent to ¥4.7 billion ($558 mm), and would have been up 62.3 percent on a currency-neutral basis.


U.S. revenues jumped 18.4 percent. The growth was driven by footwear, posting its highest sales figures in recent years at over 18 percent, while apparel showed an increase of almost 14 percent.


Sales in the overall Japan region decreased 1.9 percent to ¥104.9 billion ($1.29 bn), mainly due to weak sales of sportstyle shoes and athletic wear. Segment income increased 8.6 percent to ¥5.08 billion ($62 mm) due to cost cutting in selling, general and administrative expenses.


Sales in Europe increased 0.3 percent (+12.3 percent currency-neutral) to ¥55.5 billion ($683 mm), thanks to brisk sales of running shoes. Segment income increased 8.0 percent (an increase of 21.0 percent currency-neutral) to ¥8.6 billion ($105 mm).


Sales in the Asia Pacific region increased 21.5 percent to ¥24.1 billion ($296 mm), thanks to strong sales in Korea and Australia. Segment income increased 79.7 percent to ¥3.48 billion ($43 mm).
In Other Business, sales were ¥4.36 billion ($54 mm) and segment income was ¥150 million ($1.8 mm) reflecting the acquisition of Haglöfs.


Gross profit rose 9.4 percent to ¥103.1 billion ($1.3 bn) mainly due to improvements of the cost of sales ratio overseas. SG&A expenses increased 6.4 percent to ¥81.5 billion ($1.0 bn), mainly due to recording amortization expenses for intangible fixed assets accrued after revaluation of assets and liabilities to their fair values. Operating costs were also impacted by an increase in advertising expenses and amortization of goodwill arising from Haglöfs. Operating income rose 22.7 percent to ¥21.5 billion ($265 mm).


Looking ahead, Asics Corp. said in its statement that rising health consciousness continues to lead to greater interest in sports. But management added, “Nevertheless, business conditions are expected to remain extremely severe.” It particularly noted that the future of the Japanese market is “especially unpredictable” due to the effects of the earthquake and tsunami that hit the country.


Presently, Asics Corp. is forecasting consolidated sales of ¥254 billion and net income of ¥13.5 billion in the fiscal year ending March 31, 2012. Those figures translate to expectations of a 7.9 percent gain in revenues and a 22.2 percent climb in net income.