Asics reported 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. 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 mainly due to an improved cost of sales ratio as well as a decrease in the amount of allowance for doubtful receivables.
In a separate statement, Asics America Group (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 blamed the decline as “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 .
AAG also said it continues to see growth in online order value increase of 27.3 percent (per order) versus last year. This increase is due to launching new technology on owned e-commerce platforms that enhances page speed by over 30 percent, optimized Google shopping feed to create more personalized product recommendations, enhanced mobile checkout processes to increase conversation and launch of Asics ID to create uniform login across all sites.
ASG also indicated that as part of “the brand’s effort to pivot to a sport, health and fitness brand and reach a new, fitness-minded audience,” it launched the GEL-Kenun cushion-friendly shoe as well as the New Strong Collection of apparel for women in a partnership with Six: 02.
Companywide, earnings fell 15.4 percent to ¥15.8 billion. Sales dipped 0.7 percent to ¥310.3 billion.
In Japan, sales decreased 1.6 percent to ¥92,362 million, due to weak sales of sportswear, despite steady sales of running shoes. Segment income decreased 12.2 percent to ¥6,487 million, 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 ¥81,149 million, 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 ¥7,265 million mainly due to the effect of declined sales.
In theOceania/Southeast and South Asian regions, sales increased 14.8 percent (an increase of 13.6 percent using the previous fiscal year’s foreign exchange rate) to ¥39,169 million, 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 ¥5,553 million due to the effect of lower profit in South Korea.
In its Others Businesses segment, sales decreased 7.3 percent (a decrease of 7.1 percent using the previous fiscal year’s foreign exchange rate) to ¥6,976 million, 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.
Photo courtesy Asics
