ASICS solidified its position as the no.1 sports brand in Japan in its full year, ended March 31, as turnover rose by 17 percent to 171.04 billion yen (€1,191m-$1,520m), but domestic sales were up by just 2 percent to 78.96 billion yen (€550m-$702m). The big sales increases came from Europe and the USA, where turnover rose by 30 percent to 51.51 billion yen (€359m-$458m) and by 37 percent to 32.18 billion yen (€224m-$286m), respectively. In local currencies, sales climbed by 27 percent in Europe and by 35 percent in the USA. Net earnings jumped by nearly 97 percent to 13.81 billion yen (€96m-$123m), thanks to the sales increase, a lower tax rate and a better gross margin.
The management’s new focus on footwear seemed to pay off, as sports-style shoes were especially strong in Europe, while running shoes sold well in both Europe and the USA. Total footwear sales grew by 26 percent to 112.74 billion yen (€785m-$1,001m), while turnover from apparel slid by 1 percent to 41.20 billion yen (€287m-$366m) and equipment sales increased by 7 percent to 17.10 billion yen (€119m-$152m).
For the current full year, ASICS predicts a sales increase of 6 percent to 182.0 billion yen (€1,267m-$1,617m) with a 1 percent increase in operating income to 17.5 billion yen (€122m-$156m). The company plans to extend its sports-style business during the year. Additionally, the company set up a wholly-owned subsidiary in Shanghai to capitalize on the 2008 Olympics.
For its part, Mizuno had less growth in sales, which were up by 6 percent to 152.29 billion yen (€1,060m-$1,353m), but greater an increase in earnings, as they jumped by 158 percent to 7.77 billion yen (€54m-$69m). For its current full year Mizuno is forecasting operating income to go up by 10 percent to 7.0 billion yen (€49m-$62m) on a 2.4 percent increase in consolidated sales to 156.0 billion yen (€1,086m-$1,386m).
