Asics’ sales in the North America region climbed 15.1 percent in the third quarter, marking the third consecutive quarter of double-digit quarterly growth. Asics overall raised its profit outlook for the year.

The third quarter of 2021 for Asics North America (ANA), which includes the United States, Canada and Mexico, saw continued growth in key areas.

“We are pleased to see the momentum from the first two quarters and now into the third. It is a testament to the diligence and hard work across our teams in North America,” said Richard Sullivan, president and COO. “Despite the challenges across our industry, our goal is to continue moving the brand forward while maintaining focus on providing superior products to our consumers and partners.”

Last month, Asics announced that Sullivan will become Asics North America President and Chief Executive Officer and Executive Officer of Asics Corp, effective January 1, 2022.

Asics said its performance running and core performance sports categories saw a double-digit increase in the third quarter. Performance running was driven by demand for its Gel-Nimbus and GT-2000 shoes while the core performance sports category was driven by entry-level tennis products, including the Gel-Resolution, Court FF Novak, Gel-Game, and Gel-Dedicate shoes.

Also, growth for the North American region was driven by double-digit increases from run specialty, strategic partners and team sales channels. Further, the return of fall sports and marathon races were contributing factors for strong third-quarter results.

Extrapolating six-month results from nine-month results shows sales in the North American region increased 15.1 percent in the third quarter to ¥23,470 million. Operating profit in the region improved 46.7 percent to ¥804 million.

The North American region had shown gains of 88.1 percent in the second quarter and 50.6 percent in the first quarter.

Companywide, Asics’ sales in the quarter grew 11.3 percent to ¥112,729 million. Operating profit climbed 64.9 percent to ¥11,792 million. Net profit catapulted 6135.2 percent to ¥6,723 million.

Asics results for the nine months included:

  • Sales increased 29.8 percent to ¥322,207 million due to strong sales in all regions, mainly driven by the Performance Running category and the Core Performance Sports category;
  • Gross profit increased 38.9 percent to ¥161,276 million due to the impact of the increase in sales;
  • Operating income increased 991.2 percent to ¥35,785 million due to an improvement of the gross profit ratio and due to the increase in sales; and
  • Net profit attributable to owners of parent was ¥19,073 million against a year-ago loss of ¥3,408 million.

Regional performance in the nine months:

  • Sales in North America increased 35.8 percent to ¥66,267 million due to strong sales of the Performance Running category and Core Performance Sports category. Segment income returned to profitability in the nine months to ¥2,748 million, due to an improvement of the gross profit ratio and an increase in sales;
  • Sales in its core market of Japan increased 21.7 percent to ¥86,356 million due to strong sales of the Performance Running category and Core Performance Sports category. Segment income returned to profitability to ¥4,407 million, due to an improvement of the gross profit ratio and an increase in sales;
  • Sales in Europe increased 32.9 percent to ¥90,959 million due to strong sales of the Performance Running category and Sports Style category. Segment income increased 167.6 percent to ¥14,576 million due to an improvement of the gross profit ratio, and an increase in sales;
  • Sales in the Greater China region increased 32.6 percent to ¥41,046 million due to strong sales of the Performance Running category and Onitsuka Tiger category. Segment income increased 115.6 percent to ¥9,181 million due to the impact of the increase in sales and an improvement of the gross profit ratio of products for wholesale and retail.

Category performance in the nine months

  • Performance Running sales increased 38.0 percent to ¥167,426 million due to strong sales in all regions. Category profit increased 97.1 percent to ¥40,060 million due to an improvement of the gross profit ratio, as well as due to the sales increase.
  • Core Performance Sports sales increased 29.7 percent to ¥35,269 million due to strong sales in all regions. Category profit increased 146.1 percent to ¥6,619 million due to an improvement of the gross profit ratio and a reduction in selling, general and administrative expenses ratio, as well as due to the sales increase.
  • Sports Style sales increased 19.5 percent to ¥26,561 million due to strong sales in the Japan, Europe and Oceania regions. Category profit increased 192.2 percent to ¥4,722 million due to an improvement of the gross profit ratio, as well as due to the increase in sales.
  • Apparel and Equipment sales increased 18.6 percent to ¥25,375 million due to strong sales in Japan, North America and Europe regions. The category loss was ¥67 million, a significant reduction in loss compared to the same period last year, due to an improvement of the gross profit ratio.
  • Onitsuka Tiger sales increased 19.5 percent to ¥30,386 million due to strong sales in the Greater China and Southeast and South Asia regions. Category profit increased 38.5 percent to ¥5,379 million due to the increase in sales.

Looking ahead, Asics raised its outlook for profits for the full year. Asics still expects sales in the full year of ¥395,000 million, up 20.1 percent. Operating income is now expected to be ¥20,000 million, up from previous guidance of ¥14,500 million and against a loss of ¥3,953 million a year ago. Net income is expected to be ¥4,000 million, up from guidance of ¥2,500 million previously and against a loss of ¥16,126 million in 2020.

Photo courtesy Asics