Asics Corporation is on the rise, especially in the running and streetwear segments. The SportStyle and Onitsuka Tiger categories each saw impressive growth, exceeding 50% year-over-year, bringing their revenues close to ¥100 billion. Operating profits for these segments more than doubled compared to the previous year.
In the Performance Running category, which remains a key focus for Asics, sales increased with solid growth in the high single digits. Operating profits soared by more than a third, showcasing the brand’s strong position.
The upcoming major international sporting events in 2024, such as the Kobe 2024 Athletics World Championships and the Paris Olympics, are expected to help boost brand awareness. Asics believes these events will act as excellent platforms for athletes to showcase their performance while connecting with the brand.
For the first time, Asics achieved an operating profit exceeding ¥100 billion, achieving an operating margin of 14.8%. This is among the best margins in the industry, indicating that Asics is evolving into a new phase of growth.
In November 2024, Asics raised its financial targets for its Mid-Term Plan 2026, now aiming for at least ¥130 billion in operating profit by 2026, higher than the previous target of ¥80 billion. The company is also setting its sights on an operating margin of at least 17%, up from around 12%.
As part of its focus on innovation, Asics plans to establish the Asics Innovation Campus, which aims to be a hub for collaboration and development in performance footwear.
In 2024, overall net sales surged by 18.9% to ¥678,526 million, driven by strong performances across all categories. Gross profit rose by 27.6% to ¥378,878 million, reflecting the increase in sales. Operating profit jumped by 84.7% to ¥100,111 million.
Here’s a quick look at the performance by category:
- Performance Running: Sales rose 14.3% to ¥326,936 million, benefiting from demand in all regions.
- Core Performance Sports: Sales climbed 9.0% to ¥78,620 million, primarily thanks to strong demand in Europe and Southeast Asia.
- Apparel and Equipment: Sales increased by 5.2% to ¥38,065 million, largely driven by strong European sales.
- SportStyle: A remarkable 66.1% increase in sales to ¥98,425 million, especially strong in North America.
- Onitsuka Tiger: Sales grew 58.3% to ¥95,439 million, supported by a significant global campaign.
Asics also noted impressive regional sales growth. Japan reported a 22.5% rise in net sales, driven by strong performances in SportStyle and Onitsuka Tiger. North America enjoyed a 17.8% increase, while Europe saw sales grow by 21.2%.
Looking ahead, Asics is optimistic about continued growth. For the upcoming fiscal year ending in December 2025, the company anticipates further increases in revenue and profit, especially in the Performance Running, SportStyle, and Onitsuka Tiger categories. They are also implementing measures to control expenses more effectively to improve profitability.
The future looks bright for Asics as it navigates significant growth opportunities on a global scale.
