Despite a decline in sales for the year to March 2010, shares in Asics Corp have risen on the news that the company is forecasting a higher profit this year on expanding overseas sales.
Asics shares saw a 14 month high on the Tokyo Stock Exchange having forecasted annual sales to rise to ¥231 billion (US$2.5 billion). Japan’s Asics gets more than half of its revenue from overseas.
Reflecting on a challenging past, in a company statement, Asics said that in its year ended 31 March 2010, "the global economy recovered at a moderate pace but remained negative. The Japanese economy also staged a steady recovery, but severe conditions continued due to deterioration in the employment situation, weak personal consumption, and other issues.
“In the sporting goods industry, rising health consciousness led to consumers’ greater interest in sports. However, the business condition remained challenging because of the severe impact of consumer reluctance toward making expenditures."
Asics Corp reported that sales slid 7.3% in its year ended 31 March 2010, to ¥224.4 billion (US$2.4 billion). Net income declined 36.4% versus a year ago to ¥8.3 billion (US$89.8 million).
In other news: Asics America Corp, the North American unit of the Japanese sporting goods company has filed a trademark infringement lawsuit against shoe maker Skechers USA Inc.
The company filed the lawsuit in the US district court, Central District of California, and also accuses Skechers of unfair competition, trademark dilution and false advertising over certain Skechers shoes that Asics argues have stripes ‘confusingly similar’ to its own design.
