Asics Reports Strong Net Sales, Profits in 2023, But Expects Slowdown in North America This Year
Asics said it reported record sales and profits for 2023, but expects to see a slowdown in North America in 2024.
According to the Japan-based athletic brand, net sales in fiscal year 2023 increased 17.7 percent to 570.4 billion yen. Gross profit was up 23.3 percent to 296.9 yen. Net income was 35.2 billion yen, up 77.4 percent from the prior year.
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By category, performance running net sales increased 10.7 percent to 285.9 billion yen, driven by strong sales across all regions. Core performance sports (non-running athletic shoes) increased 33.2 percent to 72.2 billion yen. The sportstyle category increased 36.3 percent to 59.3 billion yen and the brand’s apparel and equipment division reported a 2.6 percent net sales increase to 36.2 billion yen in the period. At Onitsuka Tiger, net sales increased by 40.2 percent to 60.3 billion yen, reflecting strong sales in all regions.
Asics, which recently named a new president and CEO for North America, said it took measures in 2023 to improve its brand position in the region by closing some owned stores, reducing lower-priced products and increasing its presence in specialty running stores. Sales in North America increased 8.8 percent to 114.6 billion yen in 2023, driven by performance running and core performance sports sales. However, Asics said it expects revenues in North America to decline by 3 percent in fiscal year 2024.
“In North America and Japan, Asics has not been able to establish a brand position as strong as it has in Europe and other regions,” the company said in a release.
In Japan, 2023 net sales increased 10.1 percent to 135.8 billion yen, driven by Onitsuka Tiger and core performance sports. Europe sales increased 13.7 percent to 148 billion yen and Greater China sales increased 24.4 percent to 77.6 billion yen.
Looking ahead to 2024, Asics expects overall net sales to grow 3.4 percent to 590 billion yen. Operating income is expected to be up 7 percent to 58 billion yen. The company expects growth in all categories with the exception of apparel and equipment, which it expects to decline by 3 percent.
“Although there is uncertainty in the external environment, we expect an increase in revenue and profit by incorporating growth in core performance sports, sportstyle, Onitsuka Tiger, with performance running as the core business,” Asics said.
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