The decision to adjust the distribution of iconic footwear by Asics in European markets has led to an underlying sales decline of 7.5 percent for the Japanese brand in Europe, the Middle East and Africa (EMEA) for the first quarter. But the company points out that it fits with the brand's long-term strategy to diversify its sales, and that it should raise its turnover by the end of the year.
Asics' sales in EMEA contracted by 12.9 percent in reported terms to 27,699 million Japanese yen (€225.3m-$250.6m) and its regional operating profit tumbled by 43 percent to ¥2,302 million (€18.6m-$20.7m). The company decided to streamline European sales of shoes such as the Gel Nimbus and Gel Kayano, to make sure that it could deliver a wider range of footwear to its retail partners and thus reach a broader range of consumers.
Then again, this decline was accompanied with improvements in some strategic areas. The Asics brand's apparel sales were up by 3 percent for the quarter in EMEA, with a 10 percent rise in running apparel, and continued growth of 4 percent for Asics Tiger, the brand's more fashion-driven range. The brand's own stores raised their sales by 10 percent, with apparel taking a significant share of the turnover, which Asics regards as an indication of the potential for its apparel. The group's latest retail concept has been driving a 10 percent higher share of apparel in Asics' new and refitted stores.
Asics is continuing to invest in its brand through a creative campaign across various platforms, and through the opening of flagship stores in several prominent locations – from London's Regent Street to the Kurfürstendamm in Berlin and Les Halles in Paris, all with the brand's latest retail concept.
Drapers reported that the London store was scheduled to open ahead of the athletics world championships organized in the British capital in August by the IAAF, the international athletics federation, which is the Japanese brand's partner. It added that the London store would sell Asics and Onitsuka Tiger along with Haglöfs, the outdoor brand owned by the Asics group.
Another strong point for the quarter was the brand's performance in Russia, where sales advanced by 25 percent, and a sales rise of 9 percent in South Africa. The company is anticipating further progress in these markets for the remainder of the year. Asics Europe further pointed to signs that the opening of a subsidiary in the Middle East would expand the brand's sales in the regional market.
A transition occurred at Asics France with the retirement of Didier Dreulle, who has been with the subsidiary from the start and has been instrumental in building up the brand in France and Iberia. Dreulle had already stepped sideways two years ago when Emilio Risques was appointed to supervise France along with Spain and Portugal. Dreulle then became the regional chairman.
