Asics Nine Month Profits Climb 19.6 Percent

Asics Inc. reported net earnings climbed 19.6 percent in the nine months ended Dec. 31 on a 25.1 percent sales gain, benefiting from a weakening yen and strength in running shoes.

The company does not break out quarterly results. Breaking out

In the first nine months of fiscal 2014, consolidated net sales reached ¥238.3 billion ($2.35 bn). Domestic net sales increased 4.2 percent to ¥66.3 billion ($652.5 mm), mainly due to the steady sales of walking shoes and Onitsuka Tiger shoes accompanying the expansion of directly managed sales venues, in addition to the strong sales of running shoes and baseball equipment. Overseas sales increased 35.5 percent to ¥172 billion ($1.69 bn) due to the strong sales of running shoes in the Americas, Europe and other regions and the effect of foreign exchange rates.

Gross profit rose 30.3 percent to ¥106.5 billion ($1.05 bn), mainly due to an increase in net sales. Selling, general and administrative expenses increased 27.0 percent to ¥82.9 billion ($815 mm), primarily due to increases in advertising expenses and Korean subsidiaries’ commission paid to distributors. As a result, operating income increased 43.6 percent to ¥23.6 billion ($232 mm)

Ordinary income increased 47.4 percent to ¥25.0 billion ($246 mm), mainly due to an increase in exchange gain. Net income rose 19.6 percent to ¥15.0 billion ($147.6 mm), which was primarily due to the recording of gain on sales of property, plant and equipment arising from the sale of the land of former Kanto Kashiwa Distribution Center, and also due to the recording of income taxes refunded in the corresponding period of the previous fiscal year.

Business results by reportable segment were as follows. Effective from the fourth quarter of fiscal 2013, reportable segment in Japan Area has been changed. As it is difficult to prepare results for the third quarter of fiscal 2013 in accordance with the changed reportable segment, year-on-year comparisons are not provided.

Japan Area

Sales were ¥81.97 billion ($806.7 mm) and segment income was ¥909 million ($9 mm).

America Area

Sales increased 37.1 percent (an increase of 13.4 percent using the previous fiscal year’s foreign exchange rate) to ¥70.5 billion ($693.8 mm), due to the strong sales of running shoes and the effect of foreign exchange rates. Moreover, segment income increased 76.4 percent (an increase of 45.9 percent using the previous fiscal year’s foreign exchange rate) to ¥8.2 billion ($80.7 mm), mainly due to the improvements of the cost of sales ratio.

Europe Area

Sales increased 36.4 percent (an increase of 10.0 percent using the previous fiscal year’s foreign exchange rate) to ¥66.4 billion ($653.4 mm), thanks to the strong sales of running shoes and the effect of foreign exchange rates. However, segment income increased 19.4 percent (a decrease of 3.7 percent using the previous fiscal year’s foreign exchange rate) to ¥7.9 billion ($77.7 mm), mainly owing to the effect of foreign exchange rates on purchasing costs and an increase in selling, general and administrative expenses due to new openings of directly managed stores.

Oceania Area

Sales increased 32.6 percent (an increase of 15.9 percent using the previous fiscal year’s foreign exchange rate) to ¥10.8 billion ($106.3 mm), due to the strong sales of running shoes and the effect of foreign exchange rates. Segment income increased 37.8 percent (an increase of 20.5 percent using the previous fiscal year’s foreign exchange rate) to ¥2.4 billion ($23.6 mm).

East Asia Area

Sales increased 74.1 percent (an increase of 39.9 percent using the previous fiscal year’s foreign exchange rate) to ¥16.6 billion ($163.4 mm), due to the effect of foreign exchange rates and the recording of net sales at the sales price to end consumers at the Korean subsidiary. Segment income increased 74.1 percent (an increase of 40.2 percent using the previous fiscal year’s foreign exchange rate) to ¥1.36 billion ($13.4 mm).

Other business

Sales increased 31.5 percent (an increase of 4.8 percent using the previous fiscal year’s foreign exchange rate) to ¥7.9 billion ($77.7 mm), due to the steady sales of outdoor shoes and outdoor wear under the HAGLÖFS brand, in addition to the effect of foreign exchange rates. Segment loss was ¥406 million ($4 mm) mainly due to the effect of foreign exchange rates on purchasing costs.

By press release


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