Asics Corp. had a strong year in markets outside Japan, posting double- digit sales grwoth for the fiscal year ended March 31. However, much of the benefit of that increase was negated by income taxes that more than doubled versus the prior year. On a global basis, net revenues grew 13.7% to ¥194.52 billion ($1.67 bn) for the year from ¥171.04 billion ($1.51 bn) in the prior year.
Operating income jumped 23.1% to ¥20.25 billion ($173 mm), but increased tax expenses caused net income to inch up just 0.5% to ¥13.89 billion ($119 mm).
The sports shoe category saw continuous growth in the non-Japanese markets, especially in running shoes and sportstyle shoes, as well as growth in walking shoes in the Japanese domestic market, which paired together to boost segment revenues 20.0% to ¥135.25 billion ($1.16 bn).
“Firm growth” in athletic sports apparel lead to a 3.6% revenue increase to ¥42.67 billion ($365 mm) for the fiscal year. The company noted weakness in the baseball equipment business in the Japanese domestic market as the culprit behind a 2.9% decrease in segment net revenue to ¥16.60 bn ($142 mm).
In the U.S., continued strong sales of running shoes helped push revenues up nearly 30% for the year to nearly $370 million from $285 million in fiscal 2006, while operating income jumped 25.5% to $30 million, or 8.1% of sales, from $24 million, or 8.4% of sales, in the prior year.
Europe saw strong sales of running shoes and sportstyle shoes bring sales for the region up 19.4% to ¥61.53 billion ($527 mm), with operating income increasing 22.8% to ¥10.87 billion ($93 mm).
Looking ahead, Asics expects fiscal 2008 revenues to grow 9.2% to ¥212.50 billion with a corresponding increase in operating income of 8.7% to ¥22.00 billion. Net income is expected to grow 0.9% to ¥14.00 billion.
