Companies

Asics raises its profit estimates

Jul 18, 2024 Japan

The Japan-based sportswear company has raised its full-year operating profit guidance by 64% year-over-year on rising demand for its sneakers in the domestic market and abroad

Asics expects a record operating profit of 95 billion yen (556.1 million euros) for the year to December, up by 64% from the previous estimate of 58 billion yen (339.5 million euros).

The company also expects full-year net sales of 660 billion yen (3.9 billion euros) and net income of 58 billion yen (339.5 million euros), as compared to the previous guidance of 590 billion yen (3.5 billion euros) and 36 billion yen (210.7 million euros), respectively.

This revised outlook is supported by the company’s preliminary results for the first half of the year. Consolidated net sales are expected to increase by 17.9% year-on-year to 341.9 billion yen (2.0 billion euros), supported by growth in all regions. Asics recorded a 31.7% increase in net sales in Greater China, 31.3% in Southeast and South Asia, 23.8% in Japan, 21% in North America, 16.7% in Europe and 9.4% in Oceania compared to the first half of 2023.

According to Asics, net sales for the full year are expected to reach a record high, mainly due to demand for revival models such as GEL-1130 and GEL-KAYANO14, and Onitsuka Tiger, with continued sales growth in Japan and Greater China, as well as other regions. The weak yen is also providing a boost.

1 yen = 0.0059 eur

Image Credits: newswire.com

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