Asics Corporation reported sales rose 24.8 percent in the first quarter. Sales in the North America region rose 20.1 percent on e-commerce gains and the region returned to profitability.
Companywide, sales reached ¥106,549 million against ¥85,341 million a year ago. Asics said that despite the effects of COVID-19, net sales increased 24.8 percent due to strong sales mainly in the Performance Running category and the Onitsuka Tiger category.
Operating income came to ¥14,604 million against a loss of ¥882 million. Gross profit increased 32.3 percent to ¥53,191 million due to the impact of the increase in net sales as well as a decrease in advertising expenses.
Ordinary income was ¥14,732 million against a loss of ¥3,145 million. The results were helped by the reduction of foreign exchange loss resulting from the impact of currencies in countries with emerging economies. Net profit was ¥10,485 million against a loss of ¥243 million.
Asics wrote in a statement, “Due to the global spread of the novel coronavirus disease (COVID-19), Asics Group continued to face a challenging situation, such as cancellation or scale-down of various competitions, temporary closures of own retail stores and the slump in personal consumption. However, Net sales increased significantly and operating income became profitable due to the strong sales in Performance Running primarily in the Greater China and Europe.”
Overall highlights of the quarter include e-commerce sales increasing by 106 percent in North America, 125 percent in Europe, and 86 percent on the consolidated level.
Net sales in Performance Running increased by over 40 percent while net sales in Onitsuka Tiger increased by 30 percent.
By region, net sales in Japan increased 0.5 percent to ¥30,485 million despite the impact of the spread of COVID-19. Segment income increased 134.6 percent to ¥2,522 million due to a reduction in selling, general and administrative expenses.
Net sales in North America increased 20.1 percent to ¥18,820 million due to strong sales of the Performance Running category. Segment income returned to profitability to ¥473 million due to an increase in gross profit ratio resulting from higher e-commerce sales and an improved gross profit ratio at retail stores.
Net sales in Europe increased 43.4 percent to ¥31,121 million due to strong sales of the Performance Running category. Segment income increased approximately 10 times to ¥5,496 million mainly due to an increase in gross profit ratio resulting from higher e-commerce sales and an improvement in the gross profit ratio of products for wholesale.
Net sales in Greater China jumped 95.8 percent to ¥13,572 million due to strong sales mainly in the Performance Running and Onitsuka Tiger categories. Segment income increased 714.3 percent to ¥3,470 million due to the impact of the increase in net sales and increased gross profit ratio.
Net sales in the Oceania region increased 61.9 percent to ¥7,678 million due to strong sales of the Performance Running category and Sports Style category. Segment income increased 161.0 percent to ¥1,416 million mainly due to the impact of the increase in net sales.
Sales in the Southeast and South Asia region decreased 8.8 percent to ¥2,506 million due to the impact of the spread of COVID-19. Segment income decreased 18.8 percent to ¥165 million mainly due to the impact of the decrease in net sales.
Sales in the Others segment increased 2.4 percent to ¥7,501 million due to strong sales of the Performance Running category. Segment income was ¥411 million due to an improved gross profit ratio as well as due to the increase in net sales.
For the current year, sales are expected to reach ¥385,000 million, representing a gain of 17.1 percent. Operating income is expected to reach ¥11,500 million against a loss of ¥13,500 million a year ago. Ordinary income is expected to reach ¥10,000 million against a loss of ¥12,000 million a year ago. Net income is projected to reach ¥2,000 million against a loss of ¥3,500 million.
Photo courtesy Asics