Asics Corp., bolstered by 24 percent annual revenue growth in its vital performance running business, reported significant improvements in revenues, operating income and net profit in its fiscal year ended Dec. 31.
Annual revenues increased by 19.9 percent (9.6% in constant currency) to ¥484,601 million (€3.34bn) from ¥404,082 million as global e-commerce sales rose by 35 percent year-over-year to ¥86.3 billion (€595.5m) and the number of OneAsics members lifted 35 percent higher to 7.3 million. FY operating profit rose by 54.9 percent to ¥34,002 million (€234.6m). FY22 net profit was ¥19,887 million (€137.2m) against ¥9,402 million.
Implied Q4 results show a 48 percent jump in revenues to ¥121,533 million (€838.6m) from ¥81,875 million, but a ¥2,049 million (€14.1m) operating loss and a net loss of ¥3,358 million (€23.2m). Performance running sales grew by more than 50 percent during the period.
FY23 forecast
The Japanese company’s current FY23 outlook calls for 8.8 percent operating income growth to a projected ¥37.0 million, essentially flat net profitability at ¥20.0 million, and a total revenue increase of 5.2 percent to an anticipated ¥510.0 million. The key performance running segment is predicted to increase its annual sales by 5.7 percent to ¥273.0 million, with both core performance (+12.6% to ¥61.0 million) and sports style (+10.4% to ¥48.0 million) pegged to rise by double digits. Regionally, the group is forecasting low-single-digit revenue increase for Europe (+2.2%) and North America (+2.5%), a 3.6 percent decline in its home market and a 9.0 percent sales increase in Greater China to a projected ¥68.0 million.
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FY22 results by geography
Annual sales and profit performance was improved in all geographic regions last year except for North America, where segment operating income slipped to ¥26 million (€179m) on higher SG&A expenses related to higher e-commerce sales. North American revenues rose by 22.0 percent to ¥105,331 million (€726.8m) on positive impact from currency and strong sales in the performance running and core performance sports categories.
In Europe, segment income improved by 3.4 percent last year to ¥11,254 million (€77.7m) on 22 percent revenue expansion to ¥130,099 million (€897.7m) on strong sales from the performance running and sports style categories.
Elsewhere, Greater China’s annual operating income increased by 10.1 percent last year to ¥10,067 million (€69.5m) as total sales rose by 18.7 percent to ¥62,411 million (€430.6m) on gains within the performance running and sports style segments. Oceania reported a 55.7 percent gain in segment income to ¥5,211 million (€36.0m) on 34.5 percent revenue expansion to ¥33,292 million (€229.7m). Southeast and South Asia profit came in at ¥2,984 million (€20.6m) on 69 percent revenue growth to ¥18,848 million (€127.3m).
FY22 results by category
Performance running sales jumped by 24.0 percent year-over-year to ¥258.2 billion (€1.78bn) with Europe up more than 20 percent and Greater China gaining more than 30 percent. Segment operating profit improved by 15.4 percent last year to ¥49,181 million (€339.3m). Core performance sports profitability was 88.7 percent higher in FY22 at ¥9,489 million (€65.5m) on 31 percent revenue growth to ¥54,155 million (€373.7m).
Elsewhere, sports style segment profitability improved by 49.0 percent to ¥6,425 million (€44.3m) on 31 percent sales growth to ¥43,466 million (€299.9m); the apparel and equipment segment recorded a net loss of ¥1,645 million (€11.4m) despite 3.4 percent sales growth to ¥35,278 million (€243.4m); and the Onitsuka Tiger segment improved its annual profitability by 49 percent to ¥7,399 million (€51.1m) on 11.6 percent sales expansion to ¥43,011 million (€296.8m).
