Asics Corporation announced its full-year 2018 results, reporting sales dwindled and profits sagged, prompting the sporting retail company to reassess its business structure.
SEE ALSO : Japan’s Asics open NY flagship
Based in Tokyo, Asics Corporation said global sales for the twelve months ending December 31, 2018, fell 3.4% to ¥386.6 billion
Yearly sales at Asics declined across most geographic regions, hindered by unfavourable currencies. Locally, Japanese sales fell 1% to ¥118.2 billion, while the U.S. saw a disastrous twelve months, sending revenues in the Americas down 15% to ¥90.2 billion.
East Asia witnessed an 8.6% sales increase to ¥53.3 billion.
However, Asics’ emerging markets did see significant sales growth, led by the Middle East with a 99% increase and Russia with a 19% increase. Additionally, e-commerce sales grew by 105% in the EMEA region.
In terms of profitability, costs dragged the company into a ¥20.3 billion loss. Meanwhile, gross profit decreased by 1.4% to ¥180.6 billion due to the lower sales.
In the same week, Asics reported its new category-led organisational structure with the aim of driving growth in its Running (its new main priority), as well as Core Performance Sports and Sports Style categories.
The company said it is also targeting growth in Japan, America and China.
Likewise, new EMEA leadership is slated for Asics. Gary Raucher will head of up the newly formed group overseeing Product, Marketing, and Merchandising functions, while Scott Wakefield will oversee the region’s Planning, Buying, and Sales functions for both Wholesale and Direct-to-Consumer segments.
“I am encouraged by the growth we are continuing to see in key strategic areas, and I am confident for the future,” said Alistair Cameron, CEO of Asics EMEA.
“The changes we’ve made to our organisation will enable us to drive category-specific strategies and take a more holistic view of the market. I’m excited to work with my new management team to drive growth across the region.”
For 2019, the sportswear company is targeting a 0.9% increase in sales to ¥390 billion, while operating income is expected to grow 14.1% to ¥12 billion.