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Asics first quarter net sales decline 4 percent

In the first quarter ended March 31, 2017, consolidated net sales at Asics decreased 4 percent or 1.3 percent using the previous fiscal year’s foreign exchange rate to 113,052 million yen (993 million dollars). Gross profit decreased 1.3 percent to 51,524 million yen (452 million dollars), operating income decreased 14.1 percent to 13,237 million yen (116 million dollars). Ordinary income increased 7.1 percent, while profit attributable to owners of parent increased 0.4 percent to 9,362 million yen (82 million dollars).

Domestic net sales decreased 3.6 percent to 30,804 million yen (270 million dollars) due to weak sales of sportswear. Overseas sales decreased 4.2 percent or 0.4 percent at foreign exchange rate to 82,247 million yen (722 million dollars) due to weak sales in European region as well as the effect of the strong yen, despite strong sales of running shoes in East Asia and steady sales in Oceania/Southeast and South Asian regions.

Asics Q1 sales performance across geographies

While sales in the Japanese region decreased 2.6 percent to 35,396 million yen (311 million dollars), segment income increased 1.3 percent to 3,622 million yen (31 million dollars) driven by continuous efforts to improve profitability.

American region sales decreased 5.3 percent or 3.1 percent at foreign exchange rate to 29,857 million yen (262 million dollars), due to weak sales in the US despite strong sales in Brazil. Segment income increased 141.1 percent or 146.7 percent at foreign exchange to 2,574 million yen (22 million dollars).

Sales in the European region decreased 12.9 percent or 7.5 percent at foreign exchange to 27,699 million yen (243 million dollars). Segment income decreased 43 percent or 39.4 percent at foreign exchange to 2,302 million yen (20 million dollars) due to the effect of declined sales.

Oceanian/Southeast and South Asian regions sales increased 11.3 percent or 11.5 percent at foreign exchange to 8,068 million yen (70 million dollars), due to continuing steady sales of running shoes and the strong sales of Onitsuka Tiger shoes. Segment income increased 3.6 percent or 3.7 percent at foreign exchange rate to 1,564 million yen (13 million dollars). East Asian sales increased 13.1 percent or 17.6 percent at foreign exchange to 13,888 million yen (122 million dollars). Segment income increased 1.5 percent or 7.5 percent at foreign exchange rate to 2,603 million yen (22 million dollars).

Other business sales decreased 13.1 percent or 4.8 percent at foreign exchange to 2,647 million yen (23 million dollars), due to weak sales of outdoor shoes under the HAGLÖFS brand and the effect of foreign exchange rates. Segment income was 69 million yen (0.60 million dollars).

During the period, the group renovated its own retail store in Taiwan and opened its new concept own retail store in Singapore. In addition, the group opened Asics Women Ginza, its first own retail store dedicated for women in Tokyo. Currently, the number of own retail stores of the Asics Group brands is 844 worldwide.

Picture:Facebook/Asics