Asics First Half Bottom Line Impacted by Increased Taxes

For the first half ending September 30, Asics Corp. saw net sales increase 15.1% to ¥95.4 billion ($828.1 million) from ¥82.9 billion ($758.1 million) last year. Gross margin for the company increased 120 basis points to 43.4% of net sales from 42.2% during the first half of last year. However, overall net income actually decreased 8.8% to ¥7.0 billion ($60.9 million) for the half, from ¥7.7 billion ($70.4 million) last year as the result of a sharp increase in taxes paid.

Regionally, sales in Japan increased 0.6% to ¥40.9 billion ($355.1 million) from ¥40.7 billion ($372.1 million) last year. Overall international sales increased 28.1% to ¥58.3 billion ($505.7 million) from ¥45.5 billion ($416.2 million) last year. In the U.S. sales increased 40.0% to ¥22.7 billion ($196.9 million) from ¥16.2 billion ($148.2 million) last year, while European sales increased 20.3% to ¥30.7 billion ($266.1 million) from ¥25.5 billion ($233.2 million) during the first half of 2005. All other regions saw sales increase 45.5% to ¥4.4 billion ($38.5 million) from ¥3.0 billion ($27.9 million) last year.

Sales of footwear increased 20.7% to ¥67.6 billion ($586.9 million) from ¥56.0 billion ($512.5 million) during last year's half. Apparel sales increased 9.1% to ¥19.9 billion ($172.8 million) from last year's ¥18.2 billion ($167.0 million). Equipment sales decreased, however, down 8.3% to ¥7.9 billion ($68.4 million) from ¥8.6 billion ($78.7 million) last year.

Within Japan, shoe sales totaled ¥15.3 billion ($133.1 million), an increase of 1.8% from the ¥15.1 billion ($137.9 million) posted last year. Apparel sales in the country were ¥14.7 billion ($172.8 million), increasing 1.9% from last year's ¥14.4 billion ($131.6 million). Equipment sales were down 9.7% to ¥7.1 billion ($62.1 million) from ¥7.9 billion ($72.5 million) in H1 last year.

Internationally, footwear sales came in at ¥52.3 billion ($453.8 million), increasing 27.7% from ¥40.9 billion ($374.6 million) in last year's half. Apparel sales were ¥5.3 billion ($45.6 million), up 36.0% from last year's ¥3.9 billion ($35.3 million). Equipment sales were also up internationally, increasing 8.6% to ¥735 million ($6.4 million) from ¥677 million ($6.2 million).