Asics Corp. reported third quarter net sales of ¥60.42 billion ($628.9 mm), increasing 5.5% from net sales of ¥57.27 billion ($506.3 mm) last year. The company saw growth in both footwear and apparel more than offset a slight decline in equipment sales, but a modest decline in operating profit led to a strong decline in net income once taxes had been taken out.
Footwear sales increased 4.8% for the quarter to ¥46.03 billion ($479.1 mm). International footwear sales (outside of Japan) grew 6.3% to ¥34.60 billion ($360.1 mm), but inched up just 0.4% to ¥11.43 billion ($119.0 mm). Apparel sales increased 11.0% to ¥10.86 billion ($113.0 mm) due to a 30.8% jump in international sales to ¥3.88 billion ($40.4 mm). Apparel sales in Japan increased 2.3% to ¥6.98 billion ($72.6 mm). Equipment sales slipped 0.9% to ¥3.53 billion ($36.7 mm) as strong growth internationally, up 39.0% to ¥874 million ($9.1 mm), could not offset a 9.4% decline in Japanese sales to ¥2.66 billion ($27.6 mm).
Regionally, sales were strong in the U.S. and the rest of the world, but declined in Japan and Europe. Sales in the U.S. jumped 19.7% to ¥13.94 billion ($145.1 mm) from ¥11.65 billion ($103.0 mm) last year. Operating profit for the region, however, dropped 22.6% to ¥695.0 million ($7.2 mm) from ¥898.0 million ($7.9 mm) for the year-ago quarter. In Europe, sales declined 4.4% for the third quarter to ¥19.25 billion ($200.3 mm) as operating profit slipped 2.9% to ¥4.30 billion ($44.8 mm). Domestic sales for the company in Japan declined 3.1% to ¥21.98 billion (228.8 mm), but regional operating income dropped 24.9% to ¥611.0 million ($6.4 mm).
Overall, operating profit declined 9.1% to ¥5.97 billion ($62.1 mm) which led to a 45.6% drop in net income to ¥2.19 billion ($22.7 mm).
For the full fiscal year, Asics lowered its guidance, now expecting net sales to grow 7.4% to ¥243.00 billion, with net income dropping 19.8% to ¥10.50 billion. At the end of the fiscal first half, the company had anticipated net sales of ¥248.00 billion with net income of ¥13.50 billion.