Asics Corp. H1 sales bolstered by running, hikes FY outlook

Asics Corp. reported a 9.8 percent increase in first half attributable net income to 13,562 million yen (€97.6m) from ¥12,350 million, fueled by a 13.5 percent gain in performance running shoe sales to ¥123,284 million (€887.6m) that included strong category increases in nearly all global regions. Operating income slipped 20 percent to ¥19,166 million (€138.0m), with the decline largely related to higher commission fees. Total H1 revenues were 7.4 percent higher year-over-year to ¥225,080 million (€1.62b) from ¥209,478 million for the period ended June 30. Implied Q2 sales rose 16.3 percent to ¥119,751 million (€862.2m) from ¥102,929 million for the three months ended June 30. 

The group, citing ongoing positive running shoe sales trends, favorable currency exchange rates and an expected revision in deferred tax assets, has raised its financial year outlook for 2022. Asics now projected annual attributable profit to climb 33 percent to ¥18,000 million (€129.6m) from a prior forecast of ¥13,500 million. Annual operating income is now predicted to rise 17.4 percent to ¥27,000 million (€194.4m). Yearly revenues are now expected to hit ¥460,000 million (¥3.31b), up 9.5 percent from a February forecast of ¥420,000 million and 13.8 percent above prior year sales of ¥404,082 million. 

By region

All geographic regions posted higher H1 revenues, paced on a percentage basis by Oceania’s 17.6 percent increase to ¥15,444 million (€111.2m), where all categories were strong except the Sport Style category, and regional profit soared nearly 45 percent to ¥2,944 million (€21.2m).

In Europe, despite global supply chain congestion in early 2022, the region generated a 9.0 percent increase in H1 revenues to ¥63,030 million (€453.8m), up 4.1 percent year-over-year excluding the Onitsuka Tiger segment. There was wholesale sales growth in all major European markets and the brand’s own retail channel. The operating margin was 11.6 percent for the six months as segment income declined 22.0 percent to ¥7,148 million (€51.5m) on a lower gross profit ratio and higher advertising expenses. 

“Over the last quarter, we’ve implemented solutions to fast-track products to our partners and consumers and now have strong momentum,” said Carsten Unbehaun, CEO of Asics EMEA. 

An 11.3 percent H1 sales increase in North America to ¥47,631 million (€342.9m) was aided by the effects of the currency exchange rate. The region’s net loss of ¥562 million (€4.0m) was caused by higher logistics costs and increased SG&A expenses due to higher e-commerce sales. Strong sales in performance running and favorable currency exchange contributed to a 3.4 percent sales increase in Greater China to ¥28,945 million (€208.4m), but segment profitability fell by 3.0 percent to ¥5,962 million (€42.9m). Meanwhile, in the Southeast/South Asia region, H1 sales rose nearly 74 percent to ¥8,056 million (€58.0m), and the region’s profitability jumped 683.0 percent to ¥1,430 million (€10.3m). 

By category

By product category, performance running had a small decline (-0.9 percent) in H1 category profit to ¥25,995 million (€187.2m) despite its 13.5 percent revenue increase. The core performance sports category suffered an 11.3 percent decline in category profit to ¥4,026 million (€29.0m) from ¥4,542 million on essentially flat sales of ¥23,520 million (€169.3m). Sports Style segment profit rose 5.9 percent in H1 to ¥3,143 million (€22.6m) from ¥2,967 million on 8.2 percent sales growth to ¥18,532 million (€133.4m). Meanwhile, Onitsuka Tiger segment profit slid 11.7 percent to ¥3,622 million (€26.1m) on a 6.5 percent revenue decline to ¥19,641 million (€141.4m). Apparel and equipment segment profits fell by 88 percent to ¥26 million from ¥219 million despite a 2.7 percent increase in H1 revenues to ¥17,761 million (€127.9m) from ¥16,702 million.