Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>On's quarterly results disappoint, triggering a 10% stock drop. Meanwhile, ASICS’ share price is up 43% YTD despite modest performance.</li>
<li>ASICS shareholders advised to consider profit-taking as stock outpaces fundamentals, faces competition from resurging Nike and fast-growing On</li>
<li>On's ambitious growth projections threaten ASICS' market position, with potential market share parity within three years</li>
</ul>


On's quarterly results disappoint, triggering a 10% stock drop. Meanwhile, ASICS’ share price is up 43% YTD despite modest performance.
ASICS shareholders advised to consider profit-taking as stock outpaces fundamentals, faces competition from resurging Nike and fast-growing On
On's ambitious growth projections threaten ASICS' market position, with potential market share parity within three years


<ul>
<li>Asics absolutely smashed the last MTP; this year they have a more measured approach</li>
<li>Full-Year OP guidance for FY24 is a little shy of street expectations, but this should not impact the share price</li>
<li>Asics has a decent runway for growth ahead and will benefit from channel mix improvements. The stock remains undervalued relative to peers</li>
</ul>


Asics absolutely smashed the last MTP; this year they have a more measured approach
Full-Year OP guidance for FY24 is a little shy of street expectations, but this should not impact the share price
Asics has a decent runway for growth ahead and will benefit from channel mix improvements. The stock remains undervalued relative to peers


Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

<ul>
<li>After forecasting record sales for this year, Asics now wants to become the leading performance running brand in Japan, Europe and the US by 2026.</li>
<li>To achieve this, Asics has invested in buying up many of the leading race platforms around the world to harvest data and link its brand to serious running events.</li>
<li>The sports firm could also see significant growth for the Onitsuka Tiger brand, particularly across Asia.</li>
</ul>


After forecasting record sales for this year, Asics now wants to become the leading performance running brand in Japan, Europe and the US by 2026.
To achieve this, Asics has invested in buying up many of the leading race platforms around the world to harvest data and link its brand to serious running events.
The sports firm could also see significant growth for the Onitsuka Tiger brand, particularly across Asia.


<ul>
<li>Nike's Q2 results lead to a 12% drop in its shares, affecting sector peers Onon, Skechers, and Asics with significant declines.</li>
<li>Challenging trading conditions in China and Europe, coupled with a subdued digital traffic outlook from Nike, raise broader concerns for the sector.</li>
<li>Asics stock declines 20% post-Nike's fall, presenting an attractive buying opportunity with an estimated 20% upside, positioning Asics as a cost-effective play in the global performance running market.</li>
</ul>


Nike's Q2 results lead to a 12% drop in its shares, affecting sector peers Onon, Skechers, and Asics with significant declines.
Challenging trading conditions in China and Europe, coupled with a subdued digital traffic outlook from Nike, raise broader concerns for the sector.
Asics stock declines 20% post-Nike's fall, presenting an attractive buying opportunity with an estimated 20% upside, positioning Asics as a cost-effective play in the global performance running market.


Asics (7936) | Footwear Fallout as Nike's Q2 Sends Sector Shockwaves

<ul>
<li>Asics unveils MTP with focus on financial milestones: 7-10% Sales CAGR to 660 billion yen and Operating profit of 80 billion yen by 2026. </li>
<li>The biggest risk to the MTP looks to be market share goals in the US. However, we think overall sales and margin targets are achievable.</li>
<li>The share price is up 80% YTD and stock is no longer cheap. However, plugging in the MTP assumptions into a DCF reveals further 17% upside</li>
</ul>


Asics unveils MTP with focus on financial milestones: 7-10% Sales CAGR to 660 billion yen and Operating profit of 80 billion yen by 2026. 
The biggest risk to the MTP looks to be market share goals in the US. However, we think overall sales and margin targets are achievable.
The share price is up 80% YTD and stock is no longer cheap. However, plugging in the MTP assumptions into a DCF reveals further 17% upside


Asics (7936) | Stepping Ahead with New MTP

Japan

ASICS CORPORATION manufactures general sporting goods and equipment.  The Company's products, such as athletic shoes and sportswear, are distributed in the United States, Europe, Australia, and Asia.

ASICS Corp (7936 JP)

Asics (7936) | Pumping the Brakes

On's disappointing quarterly results lead to a 10% stock drop, while ASICS' share price is up 43% YTD. ASICS shareholders should consider profit...

Mark Chadwick

Asics (7936) | Slow Out of the Blocks

Asics takes a more measured approach after a successful end to the last MTP. Asics has continued growth potential and an undervalued stock price...

Mark Chadwick

Asics: Aiming for No. 1

Asics aims to become the top performance running brand globally by 2026, investing in race platforms for data and expanding the Onitsuka Tiger...

Michael Causton

Asics (7936) | Footwear Fallout as Nike's Q2 Sends Sector Shockwaves

Nike's Q2 results cause a 12% drop in shares, impacting sector including Asics; challenging conditions in China and Europe raise concerns for the...

Mark Chadwick

Asics (7936) | Stepping Ahead with New MTP

Asics aims for: 7-10% sales growth and 80 bn yen operating profit by 2026. Market share in the US poses a risk, but overall targets seem...

Mark Chadwick

Asics (7936) | Pumping the Brakes

​On's disappointing quarterly results lead to a 10% stock drop, while ASICS' share price is up 43% YTD. ASICS shareholders should consider profit...

Mark Chadwick

Asics (7936) | Slow Out of the Blocks

​Asics takes a more measured approach after a successful end to the last MTP. Asics has continued growth potential and an undervalued stock price...

Mark Chadwick

Asics: Aiming for No. 1

​Asics aims to become the top performance running brand globally by 2026, investing in race platforms for data and expanding the Onitsuka Tiger...

Michael Causton

Asics (7936) | Footwear Fallout as Nike's Q2 Sends Sector Shockwaves

​Nike's Q2 results cause a 12% drop in shares, impacting sector including Asics; challenging conditions in China and Europe raise concerns for the...

Mark Chadwick

Asics (7936) | Stepping Ahead with New MTP

​Asics aims for: 7-10% sales growth and 80 bn yen operating profit by 2026. Market share in the US poses a risk, but overall targets seem...

Mark Chadwick

On's disappointing quarterly results lead to a 10% stock drop, while ASICS' share price is up 43% YTD. ASICS shareholders should consider profit...

Asics takes a more measured approach after a successful end to the last MTP. Asics has continued growth potential and an undervalued stock price...

Asics aims to become the top performance running brand globally by 2026, investing in race platforms for data and expanding the Onitsuka Tiger...

Nike's Q2 results cause a 12% drop in shares, impacting sector including Asics; challenging conditions in China and Europe raise concerns for the...

Asics aims for: 7-10% sales growth and 80 bn yen operating profit by 2026. Market share in the US poses a risk, but overall targets seem...