ASICS Q1 FY20: sales down to ¥85 bn; gross profit ¥40 bn

25 May '20

2 min read

Pic: ASICS

ASICS, a Japanese multinational corporation producing footwear, has reported 13.5 per cent sales decline to ¥85.3 billion (Japanese Yen) in first quarter (Q1) FY20 that ended on March 31, 2020 compared to the sales of ¥98.7 billion in same period prior year. Gross profit for the quarter decreased 12.8 per cent to ¥40.2 billion (Q1 FY19: ¥46.1 billion).

Company reported operating loss of 0.8 billion due to decreased sales and expenses related to Olympics and Paralympic Games Tokyo 2020. ASICS stated that temporary closures of its own retail stores began from mid-January in China and almost all stores re-opened by the end of March.

Direct to customer sales during Q1 FY20 were down 2.4 per cent to ¥22.9 billion (25.3 billion). Selling, general and administrative expenses rose 1.0 per cent to ¥41 billion (¥40 billion).

The company reported that the sales were higher than the plan until February in North America, Europe, Oceania, etc. However, due to the Covid-19, overall sales declined during the quarter. E-commerce sales grew 57 per cent during the quarter.

Sales of Performance Running category were down 11.5 per cent to ¥38.2 billion (¥43.2 billion). Core Performance Sports category sales fell 9.3 per cent to ¥11.4 billion (¥12.6 billion). Sports Style sales declined 17.9 per cent to ¥7.3 billion (¥8.9 billion). Apparel and Equipment sales decreased 22.8 per cent to ¥8.2 billion (¥10.7 billion). Onitsuka Tiger sales dropped 29.5 per cent to ¥7.5 billion (¥10.7 billion).

Sales in almost all the regions declined: in Japan ¥30.3 billion (¥33 billion), North America ¥15.6 billion (¥19.8 billion), Europe ¥21.7 billion (¥24.7 billion), Greater China ¥6.9 billion (¥8.3 billion), SESA (Southeast and South Asia) ¥2.7 billion (¥3.0 billion) and Others ¥7.3 billion (¥10.3 billion). However, sales in Oceania jumped to ¥4.7 billion (¥4.5 billion).

Fibre2Fashion News Desk (JL)

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