Asics’ Operating Earnings Tumble On Americas Weakness

Asics’ Operating Earnings Tumble On Americas Weakness

Asics reported operating income slumped 46.3 percent in 2018 on a 3.4 percent decline in sales. Results were impacted by a sharp decline in sales in the Americas region. Revenues reached ¥386,7 billion, down from ¥400,.2 billion a year ago, according to a statement.

Operating earnings came to ¥10.5 billion, down from ¥19.6 billion a year ago. Asics logged a net loss of ¥20.3 billion for the year, down from earnings of ¥13.0 billion a year ago.

In the Americas, sales were down 15.0 p percent to ¥90.2 billion and declined 13.5 percent in local currencies. Operating profits in the region were down 270 percent in the Americas due to lower sales, increased discounts and increased costs related to retail stores offset lower marketing spend.

In Japan, sales were down 1.0 percent to ¥118.2 million. Operating income declined 31.4 percent.

In the EMEA region, sales were down 0.6 percent to ¥105.6 billion. Operating earnings were down 38.5 percent.

For the current year, Asics expected sales to inch up 0.9 percent to ¥390 billion. Operating income is expected to move up 14.1 percent to ¥12 billion. Net income is expected to reach ¥5 billion. Photo courtesy Asics