Pandemic causes steep drop in Asics revenue
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Japanese sportswear retailer Asics has posted a steep drop in revenues as a consequence of the coronavirus pandemic.
The firm has seen a 21.5-per-cent dip in global sales to the equivalent of US$1.4 billion in this year’s second financial quarter, and operating losses of $36.6 million against an $81.2 million profit last year.
In keeping with a global rise in e-commerce trade heavily influenced by lockdowns and stay-at-home orders internationally, Asics saw an uptick in online sales of 139 percent for its European market – but that was not enough to prevent a fall in gross profits of 20.7 percent to $667 million.
In its home market sales fell by 24 percent to $444.6 million, while in European sales were down 20.5 percent to $350.9 million.
Questions & Answers
Q.What was the total operating loss for Asics in the second financial quarter?
What was the total operating loss for Asics in the second financial quarter?
Asics reported operating losses of $36.6 million in this year's second financial quarter. This contrasts with an $81.2 million profit during the same period last year.
Q.Did Asics experience any growth in sales during the pandemic?
Did Asics experience any growth in sales during the pandemic?
Yes, Asics saw an uplift in online sales for its European market, which increased by 139 percent. This was influenced by global lockdowns and stay-at-home orders.
Q.How much did sales decrease in Asics' home market compared to Europe?
How much did sales decrease in Asics' home market compared to Europe?
Sales in Asics' home market fell by 24 percent to $444.6 million. European sales also decreased, but by a slightly lower 20.5 percent, reaching $350.9 million.
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