Asics Revenues Expand Double-Digits in Six Months

Asics reported sales increased 13.4 percent in the six months ended June 30, to ¥221.7 billion ($1.77 bn). Sales rose 7.9 percent in currency-neutral (c-n) terms.

Year-ago figures were restated to reflect a change in how it reports regions. Net income on the adjusted basis rose 4.8 percent to ¥14.5 billion ($116 mm).

Operating income advanced 8.6 percent to ¥21.3 billion ($170.2 mm). Gross margins rose 70 basis points to 45.0 percent. SG&A increased 12.5 percent, but fell 30 basis points to 34.1 percent as a percentage of sales. Operating margins overall declined 40 basis points to 9.6 percent.

In the Americas region, revenues grew 24.6 percent to ¥71.7 billion ($573.6 mm) and advanced 6.1 percent on a currency-neutral basis. Operating income reached ¥4.61 billion ($36.9 mm), down 27.4 percent on a reported basis and off 38.1 percent on a currency-neutral basis.

In the footwear category in the Americas, running shoes grew 18.2 percent to ¥59.9 billion ($479.2 mm) but only grew 0.7 percent on a currency-neutral basis. Led by strength in tennis shoes, athletic shoes sales jumped 44.5 percent to ¥5.8 billion ($46.2 mm) and expanded 23.1 percent on a currency-neutral basis.

Onitsuka Tiger’s footwear sales in the Americas rose 9.2 percent to ¥1.85 billion ($14.8 mm) but declined 7.0 percent on a currency-neutral basis. Asics Tiger shoes jumped 190.2 percent to ¥2.1 billion ($17.0 mm) and expanded 147.4 percent on a currency-neutral basis.

In the sportswear segment, running wear sales in the Americas climbed 54.1 percent to ¥3.13 billion ($25 mm) and grew 31.3 percent on a currency-neutral basis.

In other regions, Japan’s sales declined 0.2 percent to ¥68.1 billion ($545 mm) while operating income in the region grew 27.8 percent to ¥3.08 billion ($25 mm).

In the EMEA region, sales increased 8.4 percent to ¥56.8 billion ($454.4 mm) and grew 12.3 on a currency-neutral basis. Operating income was up 1.6 percent to ¥5.3 billion ($42.4 mm) and advanced 5.3 on a currency-neutral basis.

For the full year, Asics continues to expect net sales to expand 9.0 percent to ¥423 billion against adjusted figures in the year-ago period. Operating income is expected to climb 10.3 percent to ¥33 billion and net income to decline 2.3 percent to ¥21 billion.