Asics Corporation’s sales in Europe increased by 1.9 percent in local currencies during the financial year ended last March 31, with significant double-digit growth in running and indoor shoes partly offset by weaker sales of lifestyle products. Spain saw an increase, and the U.K. saw a double-digit rise. The business climbed by triple digits in Poland and Russia.
When translated into yen, Asics’ European sales fell by 13.3 percent to ¥55.4 billion (€505.8m-$618.2m). Operating income for the region dropped by 18.5 percent to ¥7.9 billion (€88.2m-$72.1m).
In the home market of Japan, the company’s sales dipped by 4.2 percent to ¥106.8 billion (€975.1m-$1,191.8m), while operating income dropped by 30.8 percent to ¥4.7 billion (€42.9m-$52.4m). The U.S. had a 0.2 percent sales increase to ¥53.0 billion, and operating income there fell by 5.2 percent to ¥3.1 billion. Other areas recorded a 14.2 percent drop in sales to ¥19.8 billion, and a 33.7 percent decrease in operating income to ¥1.9 billion.
Overall, the Japanese group’s consolidated annual sales fell by 7.3 percent to ¥224.4 billion (€2,048.7m-$2,504.2m) and its net profit dropped by 36.4 percent to ¥8.3 billion (€75.8m-$92.6m) as a strong yen impacted profitability at international subsidiaries. The company’s operating profit was off by 22.3 percent to ¥17.6 billion (€160.7m-$196.4m).
Asics is forecasting a 2.4 percent increase in annual sales this year to ¥231 billion (€2,109.1m-$2,577.8m) and a 36 percent rise in annual net income to ¥11.5 billion (€105.0m-$128.3m). Orders indicate big growth in running across all markets.
Meanwhile, in the U.S., Asics intends to construct a second, 520,000-sq.-ft. distribution center in Memphis, Tennessee, that will enable the company to ship product in two days versus three to four days presently. Asics intends to spend ¥4-5 billion (€41.1m-$50.2m) on the facility, which should be operational in April 2011.