Asics Delivers Q1 Wholesale Growth in North America, Bolstered By Speciality Run Channel
Asics North America got a lift in wholesale sales during the first quarter of 2024. And U.S. sales in the specialty run channel were a large part of that.
The Japan-based athletic brand‘s sales in the United States, Canada and Mexico all saw double-digit growth in the quarter compared to the prior year. Sales increased in the North America wholesale channel as well as in e-commerce, which saw double-digit growth for the tenth consecutive quarter.
Koichiro Kodama, president and chief executive officer of North America and managing executive officer of Asics Corporation, said that he has spent the last several months meeting with the brand’s partners across North America.
“These meetings serve an important role in deepening our relationships and allow us to discover new opportunities while continuing toward our long-term strategic goals,” he said. “We are pleased to see the increased demand for our products, but we remain focused on creating the best possible experience for our customers and business partners to achieve our objectives, together.”
In the U.S., wholesale sales were up compared to 2023, driven by double-digit growth in run specialty and sporting goods. In run specialty, Asics said its BlastTM footwear line was particularly successful, with the Novablast seeing double-digit growth over the prior year. Its Gel Nimbus shoe line also saw double-digit revenue growth.
Asics has recently ramped up its efforts to claim a top spot in the competitive running market, a strategy that largely depends on deepening its connection with the run specialty retail channel. Asics president and chief operating officer Mitsuyuki Tominaga told FN in a recent interview that the company is doubling-down on its investment into run specialty, creating innovative products and thinking about its broader role in the running ecosystem, which could include additional services and experiences outside of its core products.
Asics’ sportstyle category saw triple-digit growth compared to the same period last year, with standout growth in the GEL-1130TM and the GEL-KAYANO 14 shoe models, the latter of which saw a triple-digit increase versus the same period last year.
Across all of its regions, Asics Corp. reported a net sales increased of 14.3 percent to 174.1 billion yen, driven by strong sales in almost all categories. Gross profit was up 24.1 percent to 94.8 billion yen. Net income was 146.6 billion yen.
In February, Asics reported record sales and profits for 2023, but said it expected to see a slowdown in North America in 2024. The company took measures in 2023 to improve its brand position in the region by closing some owned stores, reducing lower-priced products and increasing its presence in specialty running stores. Sales in North America increased 8.8 percent to 114.6 billion yen in 2023, driven by performance running and core performance sports sales. However, Asics said it expected revenues in North America to decline by 3 percent in fiscal year 2024.