Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Nike reports Q4 earnings Thursday. Focus for ASICS investors: (1) Sales momentum recovery, (2) Gross margin trends.</li>
<li>Nike’s continued weakness (global footwear sales -8% YoY in MRQ) supports bullish near-term thesis on ASICS.</li>
<li>However, signs of stabilization at Nike could signal increasing competitive pressure in H2/FY26.</li>
</ul>


Nike reports Q4 earnings Thursday. Focus for ASICS investors: (1) Sales momentum recovery, (2) Gross margin trends.
Nike’s continued weakness (global footwear sales -8% YoY in MRQ) supports bullish near-term thesis on ASICS.
However, signs of stabilization at Nike could signal increasing competitive pressure in H2/FY26.


ASICS (7936) | Nike Q4 Preview: Eyes on Margins and Momentum

<ul>
<li>Asics reported its first-quarter results during trading hours, with the stock closing down 8.6% on the day.</li>
<li>While headline numbers were strong, investors may have been disappointed by the lack of upward revision to full-year guidance.</li>
<li>Our positive view on Asics remains unchanged. The company is successfully navigating geopolitical and macro uncertainties while strengthening its brand.</li>
</ul>


Asics reported its first-quarter results during trading hours, with the stock closing down 8.6% on the day.
While headline numbers were strong, investors may have been disappointed by the lack of upward revision to full-year guidance.
Our positive view on Asics remains unchanged. The company is successfully navigating geopolitical and macro uncertainties while strengthening its brand.


Asics (7936) | Q1 Earnings Impress, But Market Reacts to Unchanged Guidance

<ul>
<li>Asics reported 3Q24 earnings last week. It was yet another strong quarter with sales +16% and OP+47%</li>
<li>They lifted full year guidance on continued strength in core running and another blow-out showing from Sportstyle sneakers and Onitsuka Tigers.</li>
<li>Asics have already exceeded the MTP target for ¥80 billion in operating profit by 2026. That plan will now be revised up at the Nov IR Day.</li>
</ul>


Asics reported 3Q24 earnings last week. It was yet another strong quarter with sales +16% and OP+47%
They lifted full year guidance on continued strength in core running and another blow-out showing from Sportstyle sneakers and Onitsuka Tigers.
Asics have already exceeded the MTP target for ¥80 billion in operating profit by 2026. That plan will now be revised up at the Nov IR Day.


Asics (7936) | Delivers Strong Q3 Performance Amid Challenging Conditions

<ul>
<li>ASICS has demonstrated exceptional brand rejuvenation and profitability improvements, with an ambitious 2026 plan that capitalizes on high-growth lifestyle categories</li>
<li>However, the pivot toward fashion and luxury markets introduces heightened execution risk.</li>
<li>While the upgraded MTP targets are commendable, much of the good news appears to be priced in.</li>
</ul>


ASICS has demonstrated exceptional brand rejuvenation and profitability improvements, with an ambitious 2026 plan that capitalizes on high-growth lifestyle categories
However, the pivot toward fashion and luxury markets introduces heightened execution risk.
While the upgraded MTP targets are commendable, much of the good news appears to be priced in.


Asics (7936) | Upgraded Targets on Fashion Pivot

<ul>
<li>Asics is seeing robust D2C sales growth, now 40% of total sales, driving gross margins to 55.5% (+4.5 pp YoY) in 1H24.</li>
<li>High-Margin models and strong sales in Onitsuka Tiger and Sportsstyle categories support a forecasted 13% YoY sales increase in 2H24.</li>
<li>Asics' strategic transformation, focusing on structural reforms and emerging markets, to drive upgraded MTP though FY26.</li>
</ul>


Asics is seeing robust D2C sales growth, now 40% of total sales, driving gross margins to 55.5% (+4.5 pp YoY) in 1H24.
High-Margin models and strong sales in Onitsuka Tiger and Sportsstyle categories support a forecasted 13% YoY sales increase in 2H24.
Asics' strategic transformation, focusing on structural reforms and emerging markets, to drive upgraded MTP though FY26.


Asics (7936) | Q3 Preview; Revision of 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.

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ASICS Corp (7936 JP)

ASICS (7936) | Nike Q4 Preview: Eyes on Margins and Momentum

Nike's Q4 earnings report may impact ASICS investors, with focus on sales momentum and gross margin trends. Nike's weakness could benefit ASICS in...

Mark Chadwick

Asics (7936) | Q1 Earnings Impress, But Market Reacts to Unchanged Guidance

Asics stock drops 8.6% despite strong first-quarter results; investors disappointed by lack of upward guidance revision. Positive outlook remains...

Mark Chadwick

Asics (7936) | Delivers Strong Q3 Performance Amid Challenging Conditions

Asics reported strong 3Q24 earnings, exceeding operating profit targets and lifting full year guidance due to continued strength in core running...

Mark Chadwick

Asics (7936) | Upgraded Targets on Fashion Pivot

ASICS shows strong brand revival and profit growth but faces risks in shifting to fashion/luxury markets. Ambitious 2026 plan may already be...

Mark Chadwick

Asics (7936) | Q3 Preview; Revision of MTP

Asics' direct-to-consumer sales growth boosts gross margins, with strong sales in high-margin models driving forecasted sales increase and...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

ASICS (7936) | Nike Q4 Preview: Eyes on Margins and Momentum

​Nike's Q4 earnings report may impact ASICS investors, with focus on sales momentum and gross margin trends. Nike's weakness could benefit ASICS in...

Mark Chadwick

Asics (7936) | Q1 Earnings Impress, But Market Reacts to Unchanged Guidance

​Asics stock drops 8.6% despite strong first-quarter results; investors disappointed by lack of upward guidance revision. Positive outlook remains...

Mark Chadwick

Asics (7936) | Delivers Strong Q3 Performance Amid Challenging Conditions

​Asics reported strong 3Q24 earnings, exceeding operating profit targets and lifting full year guidance due to continued strength in core running...

Mark Chadwick

Asics (7936) | Upgraded Targets on Fashion Pivot

​ASICS shows strong brand revival and profit growth but faces risks in shifting to fashion/luxury markets. Ambitious 2026 plan may already be...

Mark Chadwick

Asics (7936) | Q3 Preview; Revision of MTP

​Asics' direct-to-consumer sales growth boosts gross margins, with strong sales in high-margin models driving forecasted sales increase and...

Mark Chadwick

Nike's Q4 earnings report may impact ASICS investors, with focus on sales momentum and gross margin trends. Nike's weakness could benefit ASICS in...

Asics stock drops 8.6% despite strong first-quarter results; investors disappointed by lack of upward guidance revision. Positive outlook remains...

Asics reported strong 3Q24 earnings, exceeding operating profit targets and lifting full year guidance due to continued strength in core running...

ASICS shows strong brand revival and profit growth but faces risks in shifting to fashion/luxury markets. Ambitious 2026 plan may already be...

Asics' direct-to-consumer sales growth boosts gross margins, with strong sales in high-margin models driving forecasted sales increase and...