Asics Corporation is increasing its guidance for the full-year 2023 after posting strong first half results. First half net sales increased 28.9 percent to ¥290.0 billion ($2.13 billion) for the period ended June 30, recording the highest ever for the six-month period as sales increased year-over-year in all regions and categories.
Net sales for the year are now expected to the reach ¥550 billion, up from its prior guidance of ¥510 billion. Asics generated ¥484.6 billion yen in 2022 and the new guidance represents growth of 13.5 percent for the year. Asics said in a filing that the increased guidance was due to the actual business results for the six-month period ended June 30 and expectations that net sales are likely to reach a record high.
Regional Performance
Net sales for Asics Japan Corp. in the Japan region increased 41.8 percent to ¥69.11 billion ($508.2 million) in the first half, “capturing inbound demand as well as enjoying rapid growth of Core Performance Sports category due to the normalization of the supply chain.” Segment income increased 159.6 percent to ¥8.01 billion mainly due to an improvement in gross margin, as well as due to the impact of the increase in net sales.
North America region net sales increased 17.4 percent to ¥55.92 billion ($411.2 million) in H1 due to the strong sales of the Performance Running category and Core Performance Sports category. Segment income amounted to ¥5.05 billion ($3.7 million) mainly due to an improvement in gross margin, as well as the impact of the increase in net sales.
Europe region net sales increased 24.4 percent to ¥78.38 million ($576.4 million, €532.5 million) due to strong sales in all categories. Segment income increased 11.3 percent to ¥7.15 billion ($52.6 million) mainly due to the impact of the increase in net sales.
Greater China region net sales increased 39.6 percent to ¥40.41 billion ($297.2 million) due to strong sales in all categories. Net sales of Onitsuka Tiger were higher than the previous year since February. Segment income increased 42.4 percent to ¥8.49 million ($62.4 million, €48.6 million) mainly due to the impact of the increase in net sales.
Oceania region net sales increased 22.3 percent to ¥18.88 billion ($138.9 million) due to strong sales in all categories. Segment income increased 6.6 percent to ¥3.14 billion ($23.1 million) mainly due to the impact of the increase in net sales.
Southeast and South Asia region net sales increased 66.9 percent to ¥13.4 billion ($98.9 million), reflecting significant sales increases in India and Malaysia, demonstrating the highest growth rates among all regions. Segment income increased significantly by 107.6 percent to ¥2.97 billion ($21.8 million) mainly due to an improvement in gross margin, as well as due to the impact of the increase in net sales.
Other regions net sales increased 19.3 percent to ¥24,209 million ($178.0 million) due to the strong sales of the Performance Running category and Core Performance Sports category. Segment income increased 84.6 percent to ¥2.66 million ($19.6 million) mainly due to an improvement in gross margin as well as due to the impact of the increase in net sales.
Category Performance
Performance Running net sales increased 19.9 percent year-over-year to ¥147.8 billion ($1.09 billion), reflecting sales growth in all regions. This increase is mainly due to the success in enhancing the promotion of Gel-Nimbus 25 in the Japan region, North America region, Europe region, and Oceania regions.
Core Performance Sports net sales increased by 71.9 percent year-over-year, reflecting double digits growth in all regions year-over-year, rising to ¥40.4 billion ($297.3 million) driven by mainly tennis shoes which have appealed with its unique way.
Sportstyle sales were ¥28.1 billion ($206.5 million) in the first half, up from ¥18.5 billion in the year-ago half.
Apparel and Equipment sales were ¥18.1 billion ($132.9 million) in the first half, up from ¥17.2 billion in the year-ago half.
Onitsuka Tiger net sales increased by 44.1 percent year on year to ¥28.2 billion ($208.1 million), reflecting the contribution by the Japan region which captured a steady recovery of sales for inbound tourists. Moreover, net sales were also strong and the revenue growth rate was more than that of the first quarter in the Greater China region.
Profitability
Despite deteriorating foreign exchange rates in purchasing goods, the gross margin improved by
1.5 points year on year to 51.0 percent demonstrating our success with reviewing product mix, optimizing selling prices, etc.
Operating income was ¥33.6 billion for the first half, the highest ever for the six months ended June 30, increased by 75.4 percent year-over-year. As a result of the lower Selling, General and Administrative (SG&A) expenses ratio due to controlling SG&A expenses as well as the effects of sales increase, the operating income ratio improved to 11.6 percent from 8.5 percent in the same period of the previous fiscal year.
Profit attributable to owners of parent was ¥24.7 billion, also the highest ever for the six months
ended June 30.
The company said it expects that net sales will continue to perform well for the full year, with favorable trends in categories such as Core Performance Sports, SportStyle, and Onitsuka Tiger, as well as in regions such as Japan, Greater China, and Southeast and South Asia.
Photo courtesy Asics
