Author: Little Sun

Compile:Xia Xiaodou

Source:GPLP

On May 26, Asics announced its first quarter 2020 financial report (in the three months ended March 31, 2020), saying that it achieved net sales of 85.3 billion yen (about 793.4 million US dollars), A year-on-year decrease of 13.5%; operating loss was 882 million yen (approximately US $ 8.2 million).

Asics said that the first-quarter performance decline was mainly due to public health events, the 2020 Tokyo Olympic Games were postponed, the marathon was suspended or reduced in scale, and related sales and operating expenses were incurred in advance to cause losses; meanwhile, the temporary closure of its own retail stores, etc. As a result, personal consumption has cooled down and operating income has dropped significantly.

On March 25, Japanese Prime Minister Shinzo Abe and the International Olympic Committee President Bach reached an agreement and jointly issued a statement that the Tokyo Olympics will be postponed until 2021. This move is bound to disrupt the established marketing plans of sponsors who have invested heavily in sponsorship, including Asics.

Before February 2020, Asics’s sales in North America, Europe, Oceania and other countries and regions were higher than planned, but after the outbreak of public health incidents, sales in the US market fell by 18.4% year-on-year; China market ’s own retail stores have been temporarily closed since mid-January and will not reopen until the end of March.

On May 27, Asics issued a notice to temporarily close the store and shorten its business hours due to the new coronavirus once again.