// Asics ends 2019 with sales decline
// For the full-year ended December 31, sales dropped 2.2%
Asics has recorded a sales drop in its full year report as marketing spend hit an all-time high and sales in Europe declined.
For the full year ended December 31, the Japanese sportswear brand and retailer saw sales drop 2.2 per cent to ¥378.05 billion (£2.64 billion), which it blamed on weak sales in its apparel and equipment category.
In Europe, sales fell as much as 9.5 per cent and were down 3.7 per cent on a currency-neutral basis, as the performance running category and the sports style category failed to deliver.
Net profit in the year was ¥7.1 billion (£48.8 million), mainly due to the recording of deferred tax assets due to tax consolidation in Japan applied from the next fiscal year.
In the fourth quarter, sales rose by a mere one per cent to ¥91.9 billion (£635.2 million), while net income came to ¥159 million (£1.1 million) against a net loss was ¥28.6 billion (£199.6 million).
Looking ahead for the current year, Asics expects revenues to reach ¥400 billion (£2.79 billion), representing a 5.8 per cent increase; operating income to equal ¥9 billion (£62.8 million), down 15.4 per cent and net income of ¥4 billion (£27.9 million), down 43.6 per cent.