Asics Corp reported sales rose 5.9 percent in the nine months ended Dec. 31, to ¥186.3 billion ($2.45bn). Net income dipped 2.3 percent to ¥8.76 billion ($115mm).
In the third quarter of fiscal 2012, domestic sales rose 4.1 percent to ¥62.9 billion ($825mm), mainly due to the strong sales of running shoes and basketball shoes. Overseas sales increased 6.8 percent to ¥123.4 billion ($1.62bn), thanks to the steady sales of running shoes in Europe and the Americas, in addition to the acquisition and consolidation of Haglofs Holding AB and Asics Canada Corporation as subsidiaries in the previous fiscal year.
Gross profit rose 5.1 percent to ¥81.95 billion, mainly due to an increase in net sales. Selling, general and administrative expenses increased 10.2 percent to ¥65.1 billion. This was mainly the result of recording amortization expenses for goodwill and intangible fixed assets arising from business combination in the previous fiscal year, in addition to an increase in advertising expenses. As a result, operating income decreased 10.8 percent to ¥16.8 billion. Ordinary income decreased 5.9 percent to ¥15.4 billion.
Sales in the Americas rose 1.7 percent to ¥46.7 billion ($613mm). Operating earnings slid 9.9 percent to ¥3.67 billion ($48.0mm).
In Japan, sales rose 3.2 percent to ¥65.84 billion. Operating income advanced 27.6 percent to ¥2.87 billion. In Europe, revenues were up 8.2 percent to ¥50.1 billion. Operating earnings were down 21.6 percent to ¥7.6 billion.
In the Oceanic area, sales dipped 7.0 percent to ¥7.4 billion. Operating profits were down 24.9 percent to ¥1.75 billion. In East Asia, sales increased 7.3 percent to ¥9.87 billion while operating earnings rose to ¥955 million from ¥593 million.
In its Other business segment, largely Haglofs, sales reached ¥6.2 million versus ¥2.6 million a year ago. The loss for the segment came to ¥117 million versus Â¥162 million.
For the full year, Asics now expects revenues to grow ¥250 billion, up 6.2 percent. Net income is expected to reach ¥11 million, off 0.4 percent.
In its statement, Asics said, “In the third quarter of fiscal 2012 (cumulative from April 1, 2011 to December 31, 2011), the pace of recovery weakened in the global economy due to the sovereign debt problem in Europe, high unemployment rates in North America and other factors. In the Japanese economy, although the economy staged a moderately paced recovery from the slowdown that the Great Eastern Japan Earthquake induced, the economic outlook remained uncertain due to various concerns such as exchange-rate and stock-market-price fluctuations, the effects of deflation and the deteriorating employment situation.”
In the sporting goods industry, interests in sport remained at a high level owing to rising health consciousness on the back of a running boom and other factors, but business conditions remained challenging.”
Asics noted that in it continue its sponsorships, including Kobe Marathon 2011, ING New York City Marathon, Paris Marathon and Singapore Marathon, and supplying its products to 10 national teams (including the Japanese national team) at the IAAF World Championships in Athletics held in Daegu, Korea.
“On the sales front, the Asics Group strengthened its sales network such as by opening Asics Store Sao Paulo in Brazil and Onitsuka Tiger Taipei in Taiwan. In the apparel business, looking to expand sales andboost profitability on a global scale, the Asics Group established Asics HongKong Apparel Limited in Hong Kong and built a solid business foundation for the development and manufacturing management of sports apparel,” the statement added.
The Asics Group also said it launched a new business “Kids Sports Challenge” to provide a service of measuring children's sporting ability, aiming to expand into a business field where the Group can lead to youth development. In addition, in an effort to train personnel to excel in a global business environment, the Asics Group started “Asics Business Leader School,” an internal company system.
