Japan's ASICS Corporation's net sales up 12.7% in Q3 FY22

For Q3 FY22, operating income increased 0.7 per cent to 36,051 million yen, mainly due to the impact of the increase in net sales. Despite the impact of the increase in net sales and profit, ordinary income decreased 4.1 per cent to 34,219 million yen, mainly due to the impact of the increase in foreign exchange loss. Furthermore, the profit attributable to owners of parent increased 21.9 per cent to 23,245 million yen due to recording in extraordinary losses caused by the impact of COVID-19 in previous fiscal, the company said in its financial statement.

From a category wise point of view, in the first three quarters of 2022, net sales of performance running category increased 17.8 per cent to 197,270 million yen due to the strong sales in all regions other than Japan region. Category profit increased 9.6 per cent to 43,910 million yen.

For apparel and equipment, in the first three quarters of FY22, net sales increased 4.9 per cent to 26,623 million yen due to foreign exchange effects. Category loss amounted to 578 million yen, mainly due to the increase in selling, general, and administrative expenses.

For core performing sports, in the first three quarters of 2022, net sales increased 16.2 per cent to 40,998 million yen. Category profit increased 24.5 per cent to 8,266 million yen.

For sports style category, in the first three quarters of FY22, net sales increased 18.4 per cent to 31,443 million yen. Category profit increased 13.2 per cent to 5,345 million yen.

Onitsuka Tiger’s net sales in the first three quarters of FY22 increased 4.9 per cent to 31,868 million yen due to the strong sales in Southeast and South Asia regions, despite the decrease in sales in the Greater China region, impact of COVID-19 related restrictions in Shanghai, and other areas. Category profit increased 17.6 per cent to 6,411 million yen.

For the first three quarters of FY22, ASICS’ net sales in the Japan region increased 3.2 per cent to 89,154 million yen due to the ongoing recovery from the impact of the production disruptions caused by shutdown of some factories. Segment income decreased 2.1 per cent to 4,316 million yen, mainly due to a deterioration in the gross profit ratio.

For the period from January to September, ASICS’ net sales in the North America region were up by 14.2 per cent to 75,656 million yen due to the foreign exchange effects. Segment income decreased 48 per cent to 1,429 million yen, mainly due to the increase in advertising expenses.

For Europe region, ASICS’ net sales for the first three months of FY22 increased 12.7 per cent to 102,479 million yen due to the foreign exchange effects as well as due to the strong sales in almost all categories. Segment income decreased 13.8 per cent to 12,566 million yen due to a deterioration in the gross profit ratio and the increase in advertising expenses.

For the period from January to September, ASICS’ net sales in Greater China region increased 16.1 per cent to 47,649 million yen due to the strong sales of performance running category and foreign exchange effects, despite weak sales of Onitsuka Tiger category. Segment income increased 16.3 per cent to 10,678 million yen, mainly due to the impact of the increase in net sales.

For the Oceania region, ASICS’ net sales in the first three quarters of FY22 increased 29.2 per cent to 24,841 million yen due to the strong sales in almost all categories. Segment income increased 43.5 per cent to 4,198 million yen due to an improvement in the gross profit ratio, as well as due to the impact of the increase in net sales.

For Southeast and South Asia regions, in the first three quarters of FY22, net sales increased 79.2 per cent to 13,895 million yen due to the strong sales in all categories. Segment income increased significantly 274.7 per cent to 2,724 million yen.

For other regions, in the first three quarters of FY22, net sales increased 27.4 per cent to 33,424 million yen due to the strong sales in all categories except apparel and equipment category. Segment income increased 63 per cent to 3,005 million yen.

As for the consolidated financial position as of September 30, 2022, ASICS’ total assets increased 28.7 per cent from the end of the previous fiscal year to 444,912 million yen, total liabilities increased 23.9 per cent to 246,938 million yen, and total net assets increased 35.1 per cent to 197,973 million yen.

According to the company’s forecast for fiscal ending December 31, 2022, net sales are expected be around 480,000 million yen, 18.8 per cent more than the net sales of previous fiscal, while the operating income is estimated to be around 34,000 million yen, 54.9 per cent up from previous fiscal. The company is expecting its ordinary income to be around 32,000 million yen, 44.4 per cent up from previous fiscal, while the profit attributable to owners of parent is expected to be 21,000 million yen, 123.3 per cent up from previous fiscal.

ALCHEMPro News Desk (DP)