Business news :Asics Corp. Posts Weaker Q1 Net on Japan, FX Rate Challenges

Asics Corp. reported that fiscal first quarter consolidated net sales increased 1.1 percent to ¥66,105 million ($825 mm) for the three-month period ended June 30, 2012.

Domestic net sales dropped 0.7 percent to ¥21,341 million ($276 mm) mainly due to the weak sales of baseball wear and equipment, notwithstanding the strong sales of running shoes. Overseas sales increased 2.0 percent to ¥44,764 million ($559 mm) due to the effect of foreign exchange rates notwithstanding the strong sales of running shoes in the Americas, Europe and other regions.

Fiscal first quarter gross profit declined 0.8 percent to ¥29,629 million ($370 mm), mainly due to a rise in purchasing costs. Although selling, general and administrative expenses decreased 0.4 percent to ¥21,305 million ($266 mm) primarily due to a decrease in advertising expenses, operating income fell 1.6 percent to ¥8,323 million ($104 mm). Ordinary income decreased 4.0 percent to ¥7,781 million ($1 mm) mainly as a result of recording exchange loss.

Net income for the first quarter decreased 4.6 percent to ¥4,934 million ($62 mm).

(SportsOneSource Media)