The running business was helped by a focus on higher-end product and “significant” sales growth in Greater China and Southeast/South Asia. European sales increased by 10.9 percent to ¥99.8 billion (€624.5m).
Annual operating income at the Japanese group rose by 85 percent to a record ¥100.1 billion (€624.8m) as gross margin expanded by 380 basis points to 55.8 percent for the 12 months ended Dec. 31. FY24 net income at Asics grew by 81 percent to ¥63.8 billion (€398.3m).
Total FY revenues climbed 108 percent to ¥678.5 billion (€4.24b) from ¥570.4 billion in FY23 with sales growth outside of Japan increasing by 86 percent to ¥545.0 billion (€3.41b).
| Asics - Income | |||
|---|---|---|---|
| 2024 | 2023 | Change | |
| FY (￥ billion) | |||
| Net sales | 678.5 | 570.4 | 19.0% |
| Gross profit | 378.8 | 296.8 | 27.6% |
| SG&A expenses | 278.7 | 242.6 | 14.9% |
| Operating profit | 100.1 | 54.2 | 84.7% |
| Ordinary profit | 92.6 | 50.6 | 83.0% |
| Extraordinary income | 0.6 | 0.0 | – |
| Profit attributable to owners of parent | 63.8 | 35.2 | 81.3% |
| Q4 (￥ billion) | |||
| Net sales | 153.1 | 122.3 | 25.2% |
| Gross profit | 87.9 | 67.2 | 30.8% |
| SG&A expenses | 79.3 | 68.8 | 15.3% |
| Operating profit | 8.6 | -1.6 | – |
| Ordinary profit | 4.4 | -4.1 | – |
| Extraordinary income | -3.2 | -0.4 | -700.0% |
| Profit attributable to owners of parent | -1.1 | -5.0 | 78.0% |
| Source: Asics | |||
By segment, the performance running category sprinted to 14.3 percent growth (+7.6% in C$) to ¥326.9 billion (€2.04b) and a 41 percent increase in operating profit to ¥70.7 billion (€441.3m). The running business was helped by a focus on higher-end product and “significant” sales growth in Greater China and Southeast/South Asia. European sales increased by 10.9 percent to ¥99.8 billion (€624.5m). Performance running sales in North America were up nearly 39 percent in the run specialty store channel and grew 11.6 percent overall to ¥96.4 million (€603.2m). Greater China sales stepped up 18.6 percent for the FY to ¥47.4 billion (€296.6m). The category ended FY24 with 5.9 percent lower inventory year-over-year with the US stock level down by 21 percent to ¥143 million and the European level some 2 percent lower year-over-year to ¥234 million.
Sales more than doubled in North America
The sportstyle business unit achieved a 66.1 percent (+5.2% in C$) sales boost to ¥98.4 billion (€614.2m) as the segment’s sales more than doubled in North America and nearly doubled in Greater China. Profitability was up by 27.3 percent to ¥12.0 billion (€167.3m). The segment’s European sales increased 50.4 percent to ¥41.3 billion (€257.8m) and by 136.9 percent in North America to ¥20.8 billion (€130.1m)
Elsewhere, core sports revenues rose by 9.0 percent to ¥78.6 billion (€490.6m) with profitability rising 17.9 percent to ¥14.1 billion (€88.0m). Tennis and indoor sports paced the development with segment sales in Europe gaining 19.8 percent to ¥19.3 billion (€120.8m); apparel/equipment segment sales increased by 5.2 percent to ¥38.0 billion (€237.2m) with 11 percent profitability expansion to ¥4.3 billion (€26.8m). Segment sales in Europe increased by 20.4 percent to ¥12.8 billion (€80.1m) while unprofitable businesses in Japan and North America were downsized; and Onitsuka Tiger sales increased across all geographies to achieve 58.3 percent revenue growth to ¥95.4 billion (€595.5m) and a 34 percent increase in segment profitability to ¥32.4 billion (€202.2m). Tiger sales across Europe rose by 65.6 percent to ¥6.0 billion (€37.5m).
In Q4, operating income gained 10.2 percent year-over-year to ¥8.6 billion (€53.7m) as the period’s net loss improved to -¥1.1 million (-€6.9m) from -¥5.0 million. Gross margin improved 250 basis points to 57.5 percent year-over-year as the period’s overall sales increased by 25 percent to ¥153.1 billion (¥955.7m).
| Asics - Revenues and margins | ||||
|---|---|---|---|---|
| 2024 | 2023 | Change | ||
| FY (￥ billion) | ||||
| Japan | Net sales | 166.4 | 135.8 | 22.5% |
| Operating profit | 27.6 | 12.7 | 117.3% | |
| Operating margin | 16.6% | 9.4% | 7.2pp | |
| Asics Japan (part of Japan) | Net sales | 94.5 | 70.4 | 34.2% |
| Operating profit | 22.1 | 7.5 | 194.7% | |
| Operating margin | 23.5% | 10.8% | 12.7pp | |
| North America | Net sales | 135.0 | 114.6 | 17.8% |
| Operating profit | 11.2 | 1.4 | 700.0% | |
| Operating margin | 8.3% | 1.3% | 7.0pp | |
| Europe | Net sales | 179.3 | 147.9 | 21.2% |
| Operating profit | 25.2 | 14.1 | 78.7% | |
| Operating margin | 14.1% | 9.6% | 4.5pp | |
| Greater China | Net sales | 100.4 | 77.6 | 29.4% |
| Operating profit | 19.3 | 13.1 | 47.3% | |
| Operating margin | 19.3% | 16.9% | 2.4pp | |
| Oceania | Net sales | 42.9 | 38.4 | 11.7% |
| Operating profit | 7.6 | 6.2 | 22.6% | |
| Operating margin | 17.8% | 16.2% | 1.6pp | |
| Southeast and South Asia | Net sales | 37.3 | 27.1 | 37.6% |
| Operating profit | 7.4 | 4.9 | 51.0% | |
| Operating margin | 20.0% | 18.3% | 1.7pp | |
| Other | Net sales | 44.8 | 49.8 | -10.0% |
| Operating profit | 6.5 | 4.4 | 47.7% | |
| Operating margin | 14.6% | 8.8% | 5.8pp | |
| Q4 (￥ billion) | ||||
| Japan | Net sales | 42.3 | 33.9 | 24.8% |
| Operating profit | 6.8 | 1.5 | 353.3% | |
| Operating margin | 16.1% | 4.6% | 11.5pp | |
| Asics Japan (part of Japan) | Net sales | 23.1 | 14.8 | 56.1% |
| Operating profit | 5.3 | 0.3 | 1666.7% | |
| Operating margin | 22.9% | 2.0% | 20.9pp | |
| North America | Net sales | 30.8 | 26.9 | 14.5% |
| Operating profit | 0.1 | -0.5 | – | |
| Operating margin | 0.4% | -1.7% | 2.1pp | |
| Europe | Net sales | 36.2 | 25.7 | 40.9% |
| Operating profit | 1.4 | -1.1 | – | |
| Operating margin | 3.8% | -4.2% | 8.0pp | |
| Greater China | Net sales | 22.2 | 16.3 | 36.2% |
| Operating profit | 1.8 | 0.1 | 1700.0% | |
| Operating margin | 7.9% | 0.5% | 7.4pp | |
| Oceania | Net sales | 11.0 | 9.6 | 14.6% |
| Operating profit | 2.1 | 1.3 | 61.5% | |
| Operating margin | 18.9% | 13.3% | 5.6pp | |
| Southeast and South Asia | Net sales | 8.6 | 5.7 | 50.9% |
| Operating profit | 0.8 | 0.1 | 700.0% | |
| Operating margin | 9.2% | 2.7% | 6.5pp | |
| Other | Net sales | 8.6 | 11.2 | -23.2% |
| Operating profit | 0.4 | -0.1 | – | |
| Operating margin | 4.4% | -1.0% | 5.4pp | |
| Source: Asics | ||||
FY25 outlook
The outlook on Asics’ current fiscal year calls for operating income expansion, including currency impacts, of 19.9 percent to ¥120.0 million (€749.1m) and a 22 percent increase in net profit to ¥78.0 million (€486.9m). Fueled in part by further growth from Sportstyle and Onitsuka Tiger segment products, annual sales are forecast to increase by 15.0 percent to a record ¥780.0 million (€4.87b) in FY25. The group sees its performance running segment’s unit profit rising by 13.1 percent to ¥80.0 billion (€500.6m) on 9.5 percent sales growth to a projected ¥358.0 billion (€2.24b).
