After reporting a 59 percent gain in FY23 operating income to ¥59,215 million (€337.8m) and 17.7 percent increase in total annual revenues to ¥570,463 million (€3.55b), Asics Corp. detailed its FY24 outlook. The Japanese group, which wants to achieve a consolidated operating income ratio of approximately 12.0 percent in FY26, forecasts a 7.0 percent rise in operating income to ¥58.0 million (€360.3m) and 3.4 percent revenue growth to ¥590.0 million for FY24.
| Asics - Income | |||
|---|---|---|---|
| Full-year (￥ million) | |||
| 2023 | 2022 | Change | |
| Net sales | 570463 | 484,601 | 17.7% |
| Cost of sales | 273,566 | 243,894 | 12.2% |
| Gross profit | 296,896 | 240,706 | 23.3% |
| SG&A expenses | 242,680 | 206,704 | 17.4% |
| Operatng profit | 54,215 | 34,002 | 59.4% |
| Non-operating income | 5,301 | 4,343 | 22.1% |
| Non-operating expenses | 8,845 | 7,431 | -28.7% |
| Ordinary profit | 50,670 | 30,913 | 63.9% |
| Extraordinary income | 8,418 | 635 | 1225.7% |
| Extraordinary losses | 8,516 | 2,846 | 199.2% |
| Pre-tax | 50,572 | 28,703 | 76.2% |
| Tax | 15,119 | 8,693 | 73.9% |
| Profit | 35,452 | 20,009 | 77.2% |
| Source: Asics Corp. | |||
While the company expects to generate double-digit sales growth from its smaller core performance sports, Sportstyle and Onitsuka Tiger businesses this year, it sees sales in its large performance running segment increasing by 5 percent in FY24 to approximately ¥300.0 million (€1.86b). Geographically, Asics forecasts double-digit sales gains in Greater China (+20%) and Southeast/South Asia (+22%) this year. FY24 sales development in Europe is estimated to be flat at ¥148.0 million (€919.3), down by 3 percent in North America to ¥111.0 million (€689.5m), and up by 2 percent in Japan to ¥138.0 million.
As for a more detailed look at the group’s FY23 results, Asics was pleased with the profits generated by its core performance sports and Sportstyle segments given both were unprofitable not long ago. Profitability within core performance sports rose by 35.0 percent to ¥12,810 million (€79.6m) on 33 percent sales growth to ¥72,154 million (€448.2m). Sportstyle generated an 88 percent year-over-year improvement in profitability to ¥12,047 million (€74.8m) on a 36 percent sales increase to ¥59,257 million (€368.1m).
Meanwhile, the flagship performance running segment reported a 1.7 percent increase in FY23 operating profit to ¥50,018 million (€310.7m) from 10.7 percent sales growth to ¥285,929 million (€1.79b). Apparel/Equipment segment sales inched up by 2.6 percent to ¥36,185 million (€224.8m), and Onitsuka Tiger profits soared by nearly 108 percent to ¥15,360 million (€95.4m) from 40 percent revenue growth to ¥60,304 million (€374.6m).
| Asics - Net Sales | |||
|---|---|---|---|
| Full-year (￥ million) | |||
| 2023 | 2022 | Change | |
| Performance Running | 285,929 | 258,272 | 10.7% |
| Core Performance Sports | 72,154 | 54,155 | 33.2% |
| SportStyle | 59,257 | 43,466 | 36.3% |
| Apparel and Equipment | 36,185 | 35,278 | 2.6% |
| Onitsuka Tiger | 60,304 | 43,011 | 40.2% |
| Total | 513,829 | 434,182 | 18.3% |
| Source: Asics Corp. | |||
Regionally, in FY23, European sales jumped by 13.7 percent to ¥147,982 million (€919.2m) on strong sales in all categories as operating income improved by 26 percent to ¥14,189 million. Sales in North America, bolstered by the performance running and core performance sports segments, rose 8.8 percent to ¥114,617 million (€711.9m). In Greater China, regional operating profit increased by 30 percent to ¥13,107 million on 24 percent sales growth to ¥77,615 million (€482.1m). In the group’s home Japan market, annual sales rose by 10.1 percent to ¥135,849 million (€843.8m), contributing to a nearly 112 percent expansion in operating profit to ¥12,796 million.
