Bolstered by double-digit operating profits for all five product segments, Asics Corp. reported a 53 percent increase in Q1 operating profit to ¥33,812 million (€202.0m) and a 14 percent improvement in net sales to ¥174,102 million (€1.04bn) for the period ended March 31. Net income attributable to the parent rose by 64 percent to ¥26,737 million (€159.7m). With the strong results, the Japanese group maintained its FY24 outlook that calls for a 7.0 percent annual operating profit expansion to ¥58,000 million (€346.4m) and 3.4 percent revenue growth to ¥590,000 million (€3.52bn).
| Asics - Income | |||
|---|---|---|---|
| Quarter ended March 31 (￥ million) | |||
| 2024 | 2023 | Change | |
| Net sales | 174,102 | 152,297 | 14.3% |
| Cost of sales | 79,254 | 75,873 | 4.5% |
| Gross profit | 94,847 | 76,424 | 24.1% |
| SG&A expenses | 61,034 | 54,303 | 12.4% |
| Operating profit | 33,812 | 22,120 | 52.9% |
| Non-operating income | 1,636 | 1,511 | 8.3% |
| Non-operating expenses | 2,372 | 1,711 | 38.6% |
| Ordinary profit | 33,076 | 21,921 | 50.9% |
| Extraordinary income | 1 | 1 | 0.0% |
| Extraordinary losses | 15 | 317 | -95.3% |
| Pre-tax | 33,062 | 21,605 | 53.0% |
| Tax | 6,239 | 5,189 | 20.2% |
| Profit | 26,823 | 16,416 | 63.4% |
| Source: Asics Corp. | |||
In Q1, the Japanese group generated double-digit operating income gains from all segments and sales increases from four of the five. Gross margin expanded by 430 basis points to 54.5 percent with growth in all categories, regions, and channels.
Performance running, Asics’ largest operating segment, reported a 36 percent operating income gain to ¥22,961 million (€137.1m) from a 13 percent sales increase to ¥87,894 million (€525.0m). The core performance sports category, meanwhile, showed an 11 percent improvement in operating income to ¥6,402 million (€38.2m) on a 9 percent sales gain to ¥24,884 million (€148.6m). Elsewhere, apparel/accessories improved its quarterly year-over-year operating income by 72 percent to ¥1,036 million (¥6.2m) despite a 2.9 percent drop in sales to ¥9,325 million (€55.7m). Sportstyle segment operating profit increased by 88 percent to ¥7,082 million (€42.3m) on a 52 percent sales gain to ¥23,493 million (€140.3m). Onitsuka Tiger sales elevated by 49 percent to ¥18,024 million (€107.7m) as the segment’s operating profit rose by 49 percent to ¥6,454 million (€38.6m).
| Asics - Net sales | |||
|---|---|---|---|
| Quarter ended March 31 (￥ million) | |||
| 2024 | 2023 | Change | |
| Performance Running | 87,894 | 77,913 | 12.8% |
| Core Performance Sports | 24,884 | 22,741 | 9.4% |
| Apparel and Equipment | 9,325 | 9,605 | -2.9% |
| SportStyle | 23,493 | 15,487 | 51.7% |
| Onitsuka Tiger | 18,024 | 12,124 | 48.7% |
| Total | 163,620 | 137,870 | 18.7% |
| Source: Asics Corp. | |||
Regionally, Q1 sales in Europe were 8.8 percent higher year-over-year at ¥48,377 million (€289.0m) with gains in all categories. The EU’s operating income increased by 48 percent to ¥9,684 million (€57.8m). In North America, the region returned to profitability at ¥3,475 million (€20.8m) on a 27 percent revenue expansion to ¥33,077 million (€197.6m). Greater China sales, meanwhile, produced a 28 percent gain in operating income to ¥5,784 million (€34.5m) from a 25 percent sales increase to ¥23,870 million (€142.6m). In Asics’ home Japan market, Q1 operating income soared by 40 percent to ¥6,598 million (€39.4m) on a 10 percent sales gain to ¥40,079 million (€239.4m).
