Asics struggles in Europe, Americas in first quarter, Asia on the up
While Adidas and Puma are in sparkling form in Europe, other leading sport brands are struggling to keep up with their pace at the start of this year. Among them Asics, whose European revenue lost 12.9% (-7.5% before exchange rate effects), falling below JPY28 billion (€225 million) in the first three months of the year. The shortfall was partly due to the euro-yen exchange rate trend, and partly to declining sales in the region. Net income was also badly affected in Europe, posting a 43% downturn, to JPY2.3 million.
Globally, the Japanese group's sales lost 4% (-1.3% before exchange rate effects), falling to JPY113 billion (€911 million), while operating income recorded a 14.1% erosion, reaching JPY13.2 billion.
On its domestic market, Asics posted a 2.6% decrease in sales, down to JPY35 billion, but operational income was instead on the up. In the Americas region, sales fell by 5.3% (-3.1% before exchange rate effects) to less than JPY30 billion, with a shortfall in the USA compensated by growth in Brazil. The group did especially well profits-wise in the Americas, reaching JPY2.6 billion.
Sales in Asia were instead on the rise. In the Oceania and South-East Asia region, revenue grew 11.3% to over JPY8 billion, with net income up 3.6%. In East Asia, Asics posted a 13.1% growth (+17.6% before exchange rate effects), notably thanks to the expansion of Onitsuka Tiger in China. In this area, net income was up 1.5%.
Finally, the group's other brands experienced some difficulties, with sales decreasing by 13.1% to less than JPY2.6 billion, notably due to weak outdoor shoe sales by Haglöfs.
For the whole fiscal year, Asics is forecasting a 5.2% rise in revenue, reaching JPY420 billion, but also a 13.6% slump in operating income, down to JPY22 billion.
Copyright © 2022 FashionNetwork.com All rights reserved.