ASICS, the renowned sports shoe brand, experienced a significant decline in sales during its second quarter, which ended on June 30th. Sales dropped by 21.5% to ¥146.89 billion compared to the same period last year, resulting in an operating loss of ¥3.87 billion. This is in stark contrast to the operating income of ¥8.58 billion the company recorded in Q2 FY19.

The decline in sales was evident across various categories. Performance running sales fell by 15.1% to ¥70.93 billion, while core performance sports sales dropped by 25.5% to ¥16.18 billion. Sports style sales also experienced a decline of 22.7% to ¥12.60 billion. In addition, apparel and equipment sales saw a significant decrease of 36.3% to ¥12.53 billion. Sales of the Onitsuka Tiger brand, a subsidiary of ASICS, dropped by 31.6% to ¥15.68 billion.

Despite the overall decline, ASICS reported a boost in digital sales. The company saw a remarkable 151% growth in digital sales in North America and a significant 139% growth in Europe. This suggests that ASICS has successfully adapted to the changing consumer behavior and preferences amidst the COVID-19 pandemic.

When examining sales performance across different regions, it becomes evident that all areas experienced a decline. Sales in Japan decreased by 24% to ¥47.0 billion. In North America, sales dropped by 27.1% to ¥28.41 billion. Europe witnessed a decline of 20.5%, with sales amounting to ¥37.09 billion. Greater China experienced a minor decline of 0.7% to ¥18.52 billion, while Oceanian sales decreased by 1.4% to ¥8.58 billion.

These challenges faced by ASICS during the second quarter are not unique to the company alone. The retail and fashion industry as a whole has been significantly impacted by the global pandemic, resulting in reduced consumer spending and a decrease in demand for non-essential products like apparel and footwear. However, ASICS’ growth in digital sales indicates the company’s ability to adapt and thrive in these challenging circumstances.

Despite the setbacks, ASICS remains optimistic for the future. The company continues to prioritize innovation and technology to meet the evolving needs of its consumers. Additionally, ASICS plans to strengthen its e-commerce and digital marketing efforts to capitalize on the growing trend of online shopping.

ASICS’ ability to navigate the current market challenges will determine its resilience and future success. With a customer-centric approach and a commitment to innovation, the sportswear brand is well-positioned to recover from the impact of the global pandemic and regain its growth momentum.

Useful Links:
1. ASICS Official Website
2. Forbes Article on COVID-19’s Impact on E-commerce