Asics Corp. reported that first half revenue increased 14.0% to ¥108.74 billion ($912.3 mm) from ¥95.40 billion ($828.1 mm) for the same period last year. Operating income grew 16.4% to ¥12.58 billion ($105.6 mm) from ¥10.80 billion ($93.8 mm), while net income jumped 18.2% to ¥8.29 billion ($69.6 mm) from ¥7.02 billion ($60.9 mm).
The company reported that continuous growth of running and sport lifestyle categories in the U.S. and Europe contributed to a 19.6% footwear revenue boost to ¥80.88 billion ($678.6 mm).
In the apparel business, sales in Europe slowed down, causing apparel revenues to drop by 3.3% compared to H1 2006 to ¥19.25 billion ($161.5 mm).
Due to increased sales of baseball equipment in Japan, the equipment business grew by 9.1% compared to H1 2006 to ¥8.60 billion ($72.2 mm).
Footwear and equipment sales pushed the domestic Japanese business while apparel business was almost flat. Revenues in the country grew 5.7% to ¥43.25 billion ($362.9 mm), and operating income inched up 0.4% to ¥2.10 billion ($17.7 mm).
Continuous strong sales of running shoes helped further expanding the business in the U.S. 18.3% to revenues of ¥26.84 billion ($225.2 mm). The operating income increased by 29.6% compared to H1 2006 to ¥2.64 billion ($22.1 mm).
Strong sales of running and sport lifestyle footwear pushed the European business 19.3% to revenue of ¥36.57 billion ($306.9 mm), as operating income jumped 20.8% to ¥6.64 billion ($55.7 mm).
In the rest of the world, powerful sales of running footwear in Australia helped increasing the revenue 34.3 % to ¥5.96 billion ($50.0 mm) while the operating income declined by 3.4% compared to FY2006 to ¥1.19 billion ($10.0 mm) due to the clearance of excessive inventory in China.
For the full fiscal year 2007, the company expects revenues to grow 17.5% to ¥228.60 billion ($2.06 bn) while operating income will jump 18.5% to ¥24.00 billion ($216.2 mm). Net income should grow 8.1% to ¥15.00 billion ($123.1 mm).
