Asics reports 7.2 percent decline in Q3 net sales

In the third quarter ended September 30, 2016, consolidated net sales at Asics decreased 7.2 percent to 312,520 million Japanese yen (2,995 million dollars). The company said, domestic net sales decreased 0.1 percent to 80,206 million Japanese yen (768 million dollars), mainly due to weak sales of sportswear and equipment, despite strong sales of running shoes, Onitsuka Tiger shoes and Asics Tiger shoes.

Overseas sales decreased 9.4 percent to 232,314 million Japanese yen (2,225 million dollars), due to weak sales in the US and the effect of the strong yen, despite strong sales of running shoes in Oceania/Southeast and South Asia and East Asia, and steady sales in Europe.

Third quarter results across geographies

Asics Tiger shoes performed favourably mainly in the European region. Gross profit decreased 4.5 percent to 139,957 million Japanese yen (1,341 million dollars) partly due to the effect of the foreign exchange rates. Operating income decreased 10.8 percent. Profit attributable to owners of parent increased 22.9 percent to 18,684 million Japanese yen (179 million dollars), which the company said was mainly due to a temporary loss caused by the structural reforms to the domestic business, which was posted in the corresponding period of the previous fiscal year.

Japanese region net sales decreased 3.6 percent to 93,855 million Japanese yen (899 million dollars), due to the decrease in intermediary trade which is conducted internally, despite strong sales of running shoes, Onitsuka Tiger shoes and Asics Tiger shoes. American region sales decreased 19.2 percent or a decrease of 11.3 percent using the previous fiscal year’s foreign exchange rate to 87,177 million Japanese yen (835 million dollars), due to the effect of changes in the retail market and intensifying competition in the US, in addition to the effect of foreign exchange rates.

European region sales decreased 6.6 percent, an increase of 3.7 percent using the previous fiscal year’s foreign exchange rate to 84,957 million Japanese yen (814 million dollars). Oceanian/Southeast and South Asian regions sales increased 10.7 percent or 24.9 percent using the previous fiscal year’s foreign exchange rate to 18,309 million Japanese yen (175 million dollars), due to the continuing strong sales of running shoes.

East Asian region sales increased 5.2 percent or 20.5 percent using the previous fiscal year’s foreign exchange rate to 34,118 million Japanese yen (326 million dollars), due to the continuing strong sales of running shoes, Onitsuka Tiger shoes, and others, particularly at the subsidiary in China. Other business sales decreased 15.1 percent or 6 percent using the previous fiscal year’s foreign exchange rate to 7,523 million Japanese yen (72 million dollars), due to some weaker performances such as outdoor wear.

Picture:Asics