Losses: Japanese Sports Giant Asics 2018 Lost 20 Billion 327 Million Yen In Fiscal Year

Recently, the Japanese sports products group Asics (Arthur) released the 2018 fiscal year's earnings report, its attribution to the parent company's losses reached 20 billion 327 million yen.

For the full fiscal year ended December 31, 2018, the core financial data of Asics are as follows:

Net sales fell 3.4% to 386 billion 662 million yen.

Operating profit fell 46.3%, to 10 billion 515 million yen

Diluted net loss of 107.59 yen per share

The loss attributable to the parent company reached 20 billion 327 million yen, compared with 12 billion 970 million yen in the same period last year.

By market:

Japanese market sales fell 1% to 118 billion 200 million yen.

Sales in the Americas fell 15% to 90 billion 200 million yen, mainly due to weak regional performance in the US.

Sales in Europe dropped 0.6% to 105 billion 600 million yen.

Sales in Oceania, Southeast Asia and South Asia dropped 1.8% to 27 billion 100 million yen, while strong sales in Southeast Asia and South Asia could not offset the decline in Australia's performance.

Sales in East Asia increased 8.6% to 53 billion 300 million yen, benefiting from the strong performance of Onitsuka Tiger brand.

All emerging market sectors achieved significant growth at fixed exchange rates.

Among them, sales in the Middle East increased by 99% over the same period, while sales in Russia increased by 19% over the same period last year.

EMEA (Europe, Middle East and Africa) electricity business sales increased 105% over the same period last year.

Asics announced that it will adjust the organizational structure of the group to product category led, to promote its running, core performance sports and sports style business growth.

Professional running related business will become a major priority. The company's goal is to accelerate growth in Japan, the United States and China.

This is consistent with the new marketing strategy formulated by Asics in January this year: gradually moving the strategic focus from the lifestyle business attracting the millennial generation of consumers to the foundation of professional running.

(see "ornate ambition" report: the Japanese sports giant Asics shifts its strategic focus: back to the professional sports foundation of running, and no longer chase the millennial generation).

In addition to the new organizational structure, Asics's EMEA (Europe, Middle East and Africa) sector also announced a new leadership team.

The new organizational structure will be combined with product, marketing and merchandising functions, and will be led by Gary Raucher. He will join the company in March 1st.

The new organizational structure will also combine the planning, buying and selling functions of wholesale and direct sales with Scott Wakefield, who has managed direct selling in Asics.

Gary Raucher and Scott Wakefield are both members of the new management team. The other members include the current chief executive officer, Robert Vermin and vice president of human resources Melinda Brooks Bray.

All four will report directly to Alistair Cameron, chief executive officer of Asics EMEA.

Alistair Cameron said: "I am encouraged by the growth in key strategic areas and have confidence in the future.

The changes made to the organization will enable us to promote strategies for specific areas and understand the market more comprehensively.

I am very pleased to work with my new management team to promote the development of the whole region. "

Asics said that the new enterprise structure will integrate its existing team to help managers in different fields to achieve their goals.

In fiscal year 2019, the company's goal is to increase sales by 0.9% to 390 billion yen, while operating profit is expected to grow 14.1% to 12 billion yen.

Onitsuka Tiger brand is strong in Japan and China, and will drive the growth of the company.

Asics expects the brand's sales in fiscal year 2019 to increase by 12.4% to 48 billion yen.

At the same time, the professional running category is still the most important business of the group, and is expected to grow 1.5% to 173 billion yen over the same period.

Asics expects that the increase in sales and operating profit margins will help the company return to profitability this year, with the aim of making the profits attributable to the parent company reach 6 billion yen.