Asics said that for a third consecutive quarter, its North America region experienced a double-digit quarterly sales increase year-over-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.”
Asics’ 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.
Leadership News
Last month, Asics announced that its current North America President and Chief Operating Officer, Richard Sullivan, had been appointed as Asics North America President and Chief Executive Officer and Executive Officer of Asics Corp. Sullivan’s new role will go into effect on January 1, 2022.
Corporate Earnings
Companywide, Asics Corp. reported sales in the nine months increased 29.8 percent to ¥322,207 million due to robust 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 net sales. Operating income increased, up 991.2 percent to ¥35,785 million from ¥3,279 million, due to an improvement of the gross profit ratio and an increase in net sales.
Profit attributable to the owners of the parent was ¥19,073 million against a loss of ¥3,408 million a year ago.
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 net sales.
In other major regions, 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 net sales.
Net 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 net sales.
Net 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 net sales and an improvement of the gross profit ratio of products for wholesale and retail.
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