Asics will have a loss in 2020, but also windfalls in the annual accounts

Running is a great corona sport: it can easily be done individually and you don’t need a gym. Even so, sportswear brand Asics, which largely relies on runners, also had to endure the corona year 2020. This is according to the consolidated annual report of Asics Corporation, which was published this weekend.

Asics’ worldwide sales fell by 13 percent in the fiscal year to 328.8 billion Japanese yen (converted 2.5 billion euros). In Europe, sales fell by 8.6 percent to 87.3 billion yen (683 million euros). The company’s operating loss amounted to 4 billion yen (31.3 million euros) compared to a profit of 10.6 billion yen (approximately 83 million euros) in 2019. In the notes to the annual report, those setbacks are largely attributed to Covid- 19 attributed. Not only were Asics stores worldwide temporarily closed, sports events that usually generate a lot of revenue for Asics were also canceled.

Coronavirus is causing the red numbers for Asics, but e-commerce is growing

Asics’ online sales did increase significantly, by an average of 86 percent worldwide. In Europe, e-commerce even grew by 133 percent. This was partly due to virtual marathon events organized by Asics, such as the Aiscs World Ekiden 2020, in which 56,000 people worldwide took part, the company writes.

There were other windfalls in the financial statements: In China, sales grew 4 percent in 2020 thanks to a 25 percent increase in demand for performance running products, generally the best-performing category of the company.

For 2021, Asics predicts to plus again: it expects revenue growth of 12.5 to 17.1 percent, with a growth of 7.1 percent in the Europe region.

In addition to its own brand, Asics Corporation also includes the Onitsuka Tiger label, which generated revenues of 33.9 billion yen in 2020, compared to 45.6 billion yen a year earlier. Asics Corporation operates in 33 countries worldwide, online and through approximately a thousand stores.

Beeld: Asics EMEA


Source: fashionunited.nl by fashionunited.nl.

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