Asics Corp. accelerated revenue growth in the second quarter, but suffered a drop in profit in a period it described as challenging.
The Japanese sporting-goods maker earned a net income of 5.1 billion yen, or $65.6 million at current exchange, a decrease of 7 percent from 5.5 billion yen, or $70.8 million, a year ago.
Earnings per share were 26.96 yen, or 35 cents, down from 29.05 yen, or 37 cents, a year ago.
Net sales advanced 7 percent to 123.9 billion yen, or $1.59 billion, from 116.4 billion yen, or $1.5 billion, in the period ended Sept. 30.
Domestic revenue rose 4 percent to 43.2 billion yen, or $556 million, mainly due to the strong sales of running shoes and basketball shoes. Overseas sales advanced 8 percent to 80.7 billion yen, or $1 billion, on the back of strong sales of running shoes in Europe and the Americas.
Revenue had grown 5 percent between 2009 and 2010, but the pace of the recovery has weakened, the firm said in a statement.
“[This is] due to the financial problem in Europe and high unemployment rates in North America and other factors. In the Japanese economy, where conditions remained difficult due to the effect of the Great Eastern Japan Earthquake, a pickup in production and other factors helped to bring about a moderately paced recovery, but there are concerns for the declining corporate earnings, the deteriorating employment situation and other factors,” the firm added.
For the full year, Asics expects net income to be 11 billion yen, or $140 million, representing a 0.4 percent increase over 2010, on a 6 percent sales increase to 250 billion yen, or $3.2 billion.