Asics America Group (AAG)’s earnings in the three month period ended September 30 fell 22 percent to ¥782 million ($6.9 mm). Sales were down 4.4 percent to ¥26.6 billion ($234 mm).
The figures were obtained by subtracting out six-month figures from figures for the nine months.
In the nine months, sales in the Americas region decreased 5.6 percent, or 7.5 percent on a currency-neutral basis, in the nine months through September 30, to ¥82.3 billion ($720 mm). The decline was attributed to weak sales in the U.S.
Segment income jumped 151.8 percent, or 146.7 percent on a currency-neutral basis, to ¥4.33 billion ($38 mm) in the nine months. The improvement was attributed mainly to an improved cost of sales ratio as well as a decrease in the amount of allowance for doubtful receivables.
In a separate statement, AAG reported that the 7.5 percent decline year-over-year for AAG was led by a 11.4 percent drop in Asics America, its U.S. operations.
AAG stated the decline was “largely due to market forces.”
AAG’s statement noted that the region experienced an increase in its retail channel growth by 36.2 percent year-over-year due to an increase in Asics owned retail locations. Two new retail locations opened this quarter at the Mall of America in Minnesota and International Market Place in Waikiki .
Extrapolating out results shows that Asics’ companywide revenues in the three months through September 30 inched up 0.6 percent to ¥106.5 billion ($932 mm). Net earnings were down 39.8 percent to ¥4.1 billion ($36 mm).
In the nine months, companywide, earnings fell 15.4 percent to ¥15.8 billion ($138 mm). Sales dipped 0.7 percent to ¥310.3 billion ($2.7 bn).
In Japan, sales in the nine months decreased 1.6 percent to ¥92.4 billion, due to weak sales of sportswear, despite steady sales of running shoes. Segment income decreased 12.2 percent to ¥6.5 billion, due to the effect of declined sales, despite an improved cost of sales ratio.
In the European region, sales decreased 4.5 percent (a decrease of 6.6 percent using the previous fiscal year’s foreign exchange rate) to ¥81.1 billion, due to the effect of changes in the retail market and intensifying competition. Segment income decreased 25.5 percent (a decrease of 27.2 percent using the previous fiscal year’s foreign exchange rate) to ¥7.3 billion mainly due to the effect of declined sales.
In the Oceania/Southeast and South Asian regions, sales in the nine months increased 14.8 percent (an increase of 13.6 percent using the previous fiscal year’s foreign exchange rate) to ¥39.2 billion, due to the continuing strong sales of running shoes and Onitsuka Tiger shoes in China despite lower sales in South Korea due to restructuring current retail stores. On the other hand, segment income decreased 8.2 percent (a decrease of 7.6 percent using the previous fiscal year’s foreign exchange rate) to ¥5.5 billion due to the effect of lower profit in South Korea.
In its Others Businesses segment, sales in the nine months decreased 7.3 percent (a decrease of 7.1 percent using the previous fiscal year’s foreign exchange rate) to ¥6.98 billion, due to weak sales of outdoor wear and other items under the HAGLÖFS brand. Segment loss was ¥57 million.
Asics retained its companywide outlook. Sales are expected to be ¥420 billion, up 5.2 percent. Profits are expected to be ¥13 billion, down 16.5 percent.