Asics Corporation saw a double-digit first quarter sales increase
mirrored in net income growth, despite decreased margins and increased
expenses as a result of beneficial currency exchange rates. Global net
revenues increased 10.0% to ¥56.84 billion ($471.2 mm) for the first
quarter from ¥51.68 billion ($451.7 mm) for last years quarter.
Japan was said to have benefited from sales of running and walking
footwear, with overall sales in the country growing 6.8% to ¥20.39
billion ($169.0 mm) from ¥19.08 billion ($166.8 mm) for Q1 2006.
Operating income in the country, however, decreased 13.0% to ¥1.87
billion ($15.5 mm) from ¥2.15 billion ($18.7 mm) last year.
Outside of Japan, sales grew 12.1% to ¥36.45 billion ($302.2 mm) on strength in both running and sports lifestyle footwear.
In the U.S., sales increased 11.4% to ¥12.24 billion ($109.8 mm), while
operating income inched up 1.7% to ¥1.33 billion ($11.1 mm). European
sales grew 8.3% to ¥20.18 billion ($167.3 mm), but operating income
decreased 13.2% to ¥4.15 billion ($34.4 mm).
Gross margins decreased 60 basis points for the quarter to 45.2% of net
sales from 45.8% in the year-ago period. SG&A expenses, meanwhile,
increased 310 basis points to 31.3% from 28.1% last year.
Operating income decreased 13.2% to ¥7.94 billion ($65.8 mm) as a
result of increased investment in advertising during the quarter.
Net income was buoyed by beneficial currency exchange rates, causing
bottom line growth to match top line, up 10.0% to ¥6.18 billion ($51.2
mm) from ¥5.62 billion ($49.1 mm) for the year-ago quarter.
