Asics reported that its sales reached 265,097 million yen (€1,843.89m-$2,291.88m) for what it described as its second quarter but in fact amounts to six or nine months until the end of September (depending on the subsidiaries). The discrepancy is due to a change in the fiscal year, which is preventing the company from providing any comparable numbers for the same period last year. The group reaped operating profit of ¥33,073 million (€230.00m-$285.83m) and net income of ¥24,534 million (€170.63m-$212.03m) for the period.
The only comparable sales figure relates to Japan, where the group's turnover crawled up by 0.2 percent to ¥55,803 million for the period. While this business unit shipped fewer shoes abroad, it enjoyed steady demand for running footwear and Onitsuka Tiger shoes. Then again, the segment's operating income decreased by 12.2 percent to ¥1,250 million (€8.69m-$10.80m) due to an increase in goodwill amortization and in investments for new stores.
The company moved ahead with its five-year growth-plan, with investments in running as well as team sports, for example with the launch of South African and Australian national rugby team jerseys. Meanwhile, the group said it opened 46 own stores during the period, including new stores in Melbourne, Tsukuba and Madrid.
Asics' sales in America reached ¥89,683 million (€623.68m-$774.96m), yielding operating income of ¥10,877 (€75.64m-$93.98m). The group said footwear sales showed steady growth in the U.S. market, which it described as a priority. Sales in Europe amounted to ¥82,544 million (€574.07m-$713.33m), generating operating income of ¥8,880 million (€61.77m-$76.75m). This compares with sales of ¥13,486 million (€93.80m-$116.56m) in Oceania, southeast and south Asia, and with ¥23,126 million (€160.85m-$199.89m) in east Asia. The other business segment, which relates to Haglöfs, the Swedish outdoor brand, reached sales of ¥9,116 million (€63.40m-$78.79m) with an operating loss of ¥252 million (€1.75m-$2.18m).
In the apparel segment, Asics has centralized some sourcing, production and quality control functions to a subsidiary in Hong Kong, while moving some production away from China and into other countries in Southeast Asia in an effort to reduce costs.
At the same time, the group has established its European distribution center in Germany and started operations there, as part of its investment to build a global logistics network. Asics also pointed to changes in human resources that appear significant for the Japanese company, with a new system that is meant to replace the traditional seniority system.
The company's full-year outlook calls for sales to reach some ¥345,000 million (€2,399.70m-$2,981.84m), with operating income of ¥29,000 million (€202.74m-$250.66m) and net income of ¥20,000 million (€139.13m-$172.85m), but again this is not directly comparable with the previous year because it takes into account nine or twelve months depending on the subsidiaries.
