Asics shares fall 14% after results as operating margin shrinks

Sales are growing, but less of that revenue is left as operating profit. The Business of Fashion reports that Asics’ operating margin fell from 22% to around 20%, despite nine-month sales gains: Europe up 37%, North America up 26% and Greater China up 28%.

According to The Business of Fashion, Asics kept its full-year operating income forecast at ¥195 billion ($1.2 billion). Analysts’ average estimate was higher, at ¥199.72 billion.

The Business of Fashion also reports that Asics’ new medium-term management plan targets sales of ¥1.5 trillion in 2029.