Asics Corp. reported significant profit improvement in the North America region in the third quarter on a 19 percent revenue gain. Asics raised its overall outlook with strength across regions in the quarter.

Third-Quarter Results
Third-quarter figures were attained by subtracting six-month figures from nine-month results.

Sales in the quarter ended September 30 overall rose 22.4 percent to ¥137,988 million ($998 mm). Operating income jumped 43.2 percent to ¥15,240 million. Ordinary income improved 39.7 percent to ¥15,240 million. Net profit rose 44.0 percent to ¥9,683 million.

By major region, sales in North America climbed 19.4 percent in the quarter to ¥28,025 million. Operating income jumped 147.6 percent to ¥1,991 million from ¥804 million.

In its home Japan region, sales ran up 14.3 percent to ¥32,651 million. Operating profits rose 33.3 percent to ¥1,230 million.

In Europe, revenue gained 19.1 percent to ¥39,449 million. Operating earnings were up 0.2 percent to ¥5,418 million from ¥5,409 million.

China’s sales rose 43.3 percent to ¥18,704 million. Operating earnings rose 55.4 percent to ¥4,716 million.

Nine-Month Results
In the nine months, Asics’ companywide sales increased 12.7 percent to ¥363,068 million due to the foreign exchange effects and strong sales in all categories.

Gross profit increased 12.5 percent to ¥181,509 million due to the impact of the increase in net sales. Operating income increased 0.7 percent to ¥36,051 million mainly due to the impact of the increase in net sales.

Ordinary income decreased 4.1 percent to ¥34,219 million as the impact of the increase in foreign exchange loss offset the benefits of the sales gain. Profit attributable to owners of the parent increased 21.9 percent to ¥23,245 million due to recording in extraordinary losses caused by the impact of COVID-19 in the previous fiscal year.

Category Performance In The Nine Months
By category, Performance Running sales increased 17.8 percent to ¥197,270 million due to the strong sales in all regions other than Japan. Category profit increased 9.6 percent to ¥43,910 million due to the impact of the increase in net sales and foreign exchange effects.

Core Performance Sports sales increased 16.2 percent to ¥40,998 million due to the strong sales in all regions other than Japan. Category profit increased 24.5 percent to ¥8,266 million due to the impact of the increase in net sales and foreign exchange effects.

Sports Style sales increased 18.4 percent to ¥31,443 million due to the strong sales in all regions other than Japan. Category profit increased 13.2 percent to ¥5,345 million due to the impact of the increase in net sales and foreign exchange effects.

Apparel and Equipment sales increased 4.9 percent to ¥26,623 million due to the foreign exchange effects. Category loss amounted to ¥578 million mainly due to the increase in selling, general and administrative expenses.

Onitsuka Tiger sales increased 4.9 percent to ¥31,868 million due to the strong sales in Southeast and South Asia regions, despite the decrease in sales in the Greater China region due to the impact of COVID-19-related restrictions in Shanghai and other areas. Category profit increased 17.6 percent to ¥6,411 million due to the impact of the increase in net sales and an improvement of the gross profit ratio.

Regional Performance In The Nine Months
By region, Japan’s sales increased 3.2 percent to ¥89,154 million due to the ongoing recovery from the impact of the production disruptions caused by the shutdown of some factories. Segment income decreased 2.1 percent to ¥4,316 million mainly due to a deterioration in the gross profit ratio.

Sales in the North America region increased 14.2 percent to ¥75,656 million due to the foreign exchange effects. Segment income decreased 48.0 percent to ¥1,429 million mainly due to the increase in advertising expenses.

Europe region sales increased 12.7 percent to ¥102,479 million due to the foreign exchange effects as well as due to the strong sales in almost all categories. Segment income decreased 13.8 percent to ¥12,566 million due to a deterioration in the gross profit ratio and the increase in advertising expenses.

Greater China region sales increased 16.1 percent to ¥47,649 million due to the strong sales of Performance Running and foreign exchange effects, despite weak sales of the Onitsuka Tiger category. Segment income increased 16.3 percent to ¥10,678 million mainly due to the impact of the increase in net sales.

In the Oceania region, sales increased 29.2 percent to ¥24,841 million due to strong sales in almost all categories. Segment income increased 43.5 percent to ¥4,198 million due to an improvement in the gross profit ratio, as well as due to the impact of the increase in net sales.

Sales in the Southeast and South Asia regions increased 79.2 percent to ¥13,895 million due to strong sales in all categories. Segment income increased significantly 274.7 percent to ¥2,724 million due to an improvement in the gross profit ratio, as well as due to the impact of the increase in net sales.

Other region sales increased 27.4 percent to ¥33,424 million due to the strong sales in all categories except Apparel and Equipment category. Segment income increased 63.0 percent to ¥3,005 million mainly due to the impact of the increase in net sales.

Outlook
The updated outlook for the year calls for:

  • Sales to be approximately ¥480,000 million, up 18.8 4 percent (Prior, ¥460,000 million, up 8 percent);
  • Operating income to be approximately ¥34,000 million, up 54.9 percent (Prior, ¥27,000 million, up 0 percent);
  • Ordinary income to be approximately ¥32,000 million, up 44.4 percent (Prior, ¥26,000 million, up 3 percent); and
  • Profit attributable to owners of parent to be approximately ¥21,000 million, up 123.3 percent (¥18,000 million, up 4 percent).

Photo courtesy Asics