Asics shutters New York flagship as Covid plagues business
In this article (5)
Japanese sporting goods maker Asics closed down its New York flagship store in December amid the prolonged impact of the COVID-19 pandemic, the company announced on Monday.
The store opened in December 2017 on Fifth Avenue, selling running shoes and sportswear. Asics’s decision comes as high rent bites the company, on top of uncertainties around when the pandemic will end.
Due to the store’s closure, the sports brand is taking an extraordinary loss of about 2.3 billion yen ($22 million) for the fiscal year ended December 2020. The loss is already included in the latest earnings forecast.
Asics’ sales in North America declined by 19% between January and September 2020, compared to the same period in 2019. The company is expected to take a net loss of 17 billion yen in fiscal 2020. Sales are forecast to decline by 15% to 320 billion yen.
Questions & Answers
Q.When did the Asics New York flagship store open and what did it sell?
When did the Asics New York flagship store open and what did it sell?
The store opened in December 2017 on Fifth Avenue. It sold running shoes and sportswear. Its closure was announced on Monday by the company.
Q.What was the extraordinary loss Asics incurred due to the store's closure?
What was the extraordinary loss Asics incurred due to the store's closure?
Asics is taking an extraordinary loss of about 2.3 billion yen, which is equivalent to $22 million, for the fiscal year that ended in December 2020. This loss is already accounted for in their latest earnings forecast.
Q.How did Asics' sales in North America perform in 2020 compared to the previous year?
How did Asics' sales in North America perform in 2020 compared to the previous year?
Sales in North America declined by 19% between January and September 2020. This is in comparison to the same nine-month period in 2019.
Q.What is the expected net loss for Asics for the fiscal year 2020?
What is the expected net loss for Asics for the fiscal year 2020?
Asics is expected to take a net loss of 17 billion yen for the fiscal year 2020. Overall sales are forecast to decline by 15% to 320 billion yen for the year.
Reader pulse
Was closing the flagship a smart move?
20,941 votes so far