Asics Corp raised its sales forecast for the year, but cut its earnings targets due to currency fluctuations and non-recurring charges.
The Japanese sporting goods giant now expects revenues of ¥429 billion, up from a previous forecast of ¥423 billion a year ago. In the year-ago period, Asics registered sales of ¥354.1 million. The new forecast translates to a gain of 21.2 percent.
Asics said sales are expected to exceed the previous forecast due to decreasing value of yen against major foreign currencies to the rate lower than initially predicted.
Asics also said it now expects net income of ¥13 billion, down from a previously forecast of ¥21 billion. In 2014, it earned ¥22.2 billion.
In its statement, Asics said the reason for the amendment to the forecast was due to an extraordinary loss to be recorded of ¥5.085 billion, including special extra retirement payment associated with the career change support program, one of the measures of the business structure reforms of the domestic business which was announced on July 1, 2015. Asics added, “Moreover, we hereby announce that we reviewed the other items in the forecast of consolidated business results.”
Operating income is expected to be below the previous forecast due mainly to the effect of foreign exchange rate on purchasing cost at a subsidiary in Brazil, which resulted in an increase of the cost of sales ratio.
