Sub Brand Ghosts And Tiger Tigers Performance Rose But Arthur's Three Quarter Sales Profits Declined Twice.

Core brand

Sales fell 7% year-on-year, sub brands

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After two years of weak performance,

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Recently, the Japanese sports veteran announced the financial data in the first three quarters of fiscal year 2018.

As of September 30th, overall sales fell 4.7% to 295 billion 700 million yen, operating profit decreased by 37.1% to 15 billion 400 million yen, and net profit fell 47.5% to 8 billion 300 million yen.

Both sales and profits have declined.

The annual performance expectations were then lowered.

During the period, one of the few growth highlights was ASICS's movement.

(Onitsuka Tiger) sales increased by 30% over the same period last year.

Among them, shoe performance is excellent and sales growth is up to 28%.

By contrast, sales of core brand ASICS fell 7% year-on-year.

In response, the company said it would improve its performance through restructuring its business, consider reconfiguring Japanese and overseas assets, clear up unmarketable stocks and close some of its poor performing stores.

In addition to continuing to consolidate the core category of professional running shoes, ASICS group also intends to strengthen lifestyle and promote internal business reform.

Judging from the situation in various regions, Japan's domestic market performance is still sluggish, with sales falling 2.5% to 77 billion 100 million yen.

ASICS said that the decline in performance was mainly affected by the reduction of low margin sports equipment product lines.

The overseas market has benefited from the excellent performance of the Chinese region.

Sales rose 6.2% to 41 billion 600 million yen over the same period last year.

Due to the promotion of advertising investment in the Chinese market this year, the continuous signing of celebrity spokesmen such as Aarif Lee and Jiang Shu Ying has led to a 3.1% decline in profits.

ASICS pointed out that the fourth quarter is double eleven Shopping Festival, which is expected to boost sales in the Chinese market.

Although China and East Asia performed well, emerging markets such as South Africa and the Middle East also experienced high growth, but due to varying degrees of decline in the Americas, Oceania, Europe and South Asia, in the first three quarters,

Sales fell 5.5% to 218 billion 600 million yen over the same period last year.

Among them, the Americas market sales fell 17.8%, the loss of nearly 1 billion yen, the largest decline in performance.

ASICS believes that in the highly competitive American market, brands will continue to face difficult retail environment and performance trends.

From the perspective of category, sales of ASICS running shoes have maintained steady growth.

According to the report, sales of tennis shoes increased by 2.4%. After signing Djokovic this year, the brand exposure has been greatly improved. ASICS has also worked with China Jinhua Zhang Shuai.

In October of this year, the Japan Economic News reported that ASICS will promote the automatic production of shoes, and plans to introduce robots to some production lines in Tottori County factory in spring 2019, and half of the workforce will be reduced.

It is reported that the factory will produce popular mound tiger products and running shoes.

Founded in 1949, ASICS and New Balance, Saucony and Brooks are also called the four largest in the world.

Brand.

But in the past two years, the performance of the Japanese sports veteran has been weak.

According to the financial report, in the 2016 fiscal year, its sales decreased by 6.9% to 399 billion 100 million yen compared with that of the previous year, and increased by 0.3% to 400 billion 200 million yen in the 2017 fiscal year.

However, the growth rate of the Chinese market has reached 34.5%, and last year's performance was barely achieved under the strong help of China.

In the past three quarters of financial data, ASICS's 2018 financial year report card may still be unsatisfactory.