Arthur Released 2018 Earnings Report, Operating Profit Nearly Short Cut Was The Biggest Loss In 20 Years.

In February 13th, Japanese sports brand Arthur released the 2018 and four quarter earnings reports.

According to the financial report, in 2018, the overall sales fell 3.4% to 386 billion 600 million yen (23 billion 700 million yuan) compared with the same period last year, and the operating profit decreased by 46.3% to 10 billion 500 million yen, and the final loss was 20 billion 300 million yen. This is also the biggest loss Arthur suffered in 20 years.

Arthur pointed out that the local Japanese market, the European market and the Americas market all had problems such as the decline in sales of sports wear and running shoes, and the increase in the cost of Direct stores, especially in the face of increasingly fierce competition in the Americas market. The sales of running shoes decreased by 14.2% compared with the same period last year, resulting in a significant decline in group performance.

In addition, the business restructuring, re evaluation and allocation of domestic and overseas business activities such as Japan and overseas assets, which began in November last year, resulted in a total loss of 24 billion 300 million yen (about 1 billion 500 million yuan).

On the other hand, sales of Arthur's sports brand Onitsuka Tiger increased by 31.6% over the same period.

In the East Asian market, thanks to the excellent performance of the Chinese region, sales of Arthur in China increased by 17.3% over the same period last year, reaching 53 billion 300 million yen, and maintained a good momentum.

Arthur, President and COO Hiroda Yasuhito, told reporters at the press conference that because of the huge losses, all the directors and executive directors of the company responsible for performance matters will be returned to zero.

"But I believe that the 2020 Olympic Games and Paralympic Games in Tokyo will be a year of Arthur's leap, and we will also begin the offensive in 2019."

In August 2018, Arthur announced the latest "Arthur growth plan 2020". The target is that by 2020, the global income reached US $4 billion 500 million, the operating income rate was 7%, the DTC business has improved, the customer base has expanded, the team capability has been strengthened, and more investment has been made in R & D.

The plan is divided into five parts, including focusing on the professional running market in the United States, enhancing the growth of the Chinese market, making the business as a new growth point, turning clothing into profitable businesses, setting up exit mechanisms in every country, region, store and category, and implementing the cost structure reform.

According to the core strategy of the Arthur growth plan 2020, Arthur will open its flagship store in Shibuya, Tokyo, in its own retail business.

In the ghost tiger tiger brand, launched the NIPPON MADE custom order, and opened more flagship stores in Japan.

However, as sales and profits have declined, Arthur has cut 2019 annual performance expectations. Sales are expected to grow 0.9% to 390 billion yen compared with the same period last year, operating profit grew 14.1% to 12 billion yen.

In this regard, the company said the next stage will be running shoes "Resurrection" as the goal, continue to consolidate the core category of professional running shoes.

In the Americas market with the biggest decline in performance, it will once again strengthen cooperation with specialized stores and continue to increase direct outlets in the Chinese market and the European market.