Japan Specialist

Mark Chadwick

Equity Bottom-Up

<ul>
<li>Onitsuka Tiger's 75% gross margins and 38% sales growth increasingly resemble a luxury brand, not a running-shoe company, making separation strategically and financially logical.</li>
<li>The carve-out creates future optionality for IPO, external capital or partnerships, while allowing management to accelerate global expansion and flagship-store investment.</li>
<li>Valuation upside depends on sustaining brand heat beyond Asia; tourism exposure, China concentration and fashion-cycle risk temper comparisons with premium luxury peers.</li>
</ul>


Onitsuka Tiger's 75% gross margins and 38% sales growth increasingly resemble a luxury brand, not a running-shoe company, making separation strategically and financially logical.
The carve-out creates future optionality for IPO, external capital or partnerships, while allowing management to accelerate global expansion and flagship-store investment.
Valuation upside depends on sustaining brand heat beyond Asia; tourism exposure, China concentration and fashion-cycle risk temper comparisons with premium luxury peers.


ASICS (7096) | the Tiger Outgrows Its Cage

<ul>
<li>ASICS delivered record Q1 sales and profitability, driven by premiumization, exceptional SportStyle growth, and continued strength in core Performance Running across all regions.</li>
<li>Despite gross margin pressure from US tariffs, operating margin expanded to 22.5%, significantly above full-year guidance, highlighting strong pricing power and operating leverage.</li>
<li>Shares sold off after unchanged guidance and softer April sales data, but earnings risks remain skewed upward despite increasingly demanding valuation multiples.</li>
</ul>


ASICS delivered record Q1 sales and profitability, driven by premiumization, exceptional SportStyle growth, and continued strength in core Performance Running across all regions.
Despite gross margin pressure from US tariffs, operating margin expanded to 22.5%, significantly above full-year guidance, highlighting strong pricing power and operating leverage.
Shares sold off after unchanged guidance and softer April sales data, but earnings risks remain skewed upward despite increasingly demanding valuation multiples.


ASICS (7096)| SportStyle Momentum Drive Record Results

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>Asics delivered yet another record year in FY2025 ending December.</li>
<li>But while the sports brand has usually relied on overseas markets for its growth, last year Japan led, up 35%.</li>
<li>However, roughly a third of domestic sales came from inbound tourists buying the Onitsuka Tiger brand. Asics still needs to address its relatively weak brand perception among Japanese.</li>
</ul>


Asics delivered yet another record year in FY2025 ending December.
But while the sports brand has usually relied on overseas markets for its growth, last year Japan led, up 35%.
However, roughly a third of domestic sales came from inbound tourists buying the Onitsuka Tiger brand. Asics still needs to address its relatively weak brand perception among Japanese.


Asics Closes in on ¥1 Trillion but Still Lacks Support at Home

Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Cross Asset Strategy

<ul>
<li>Global Ex-USA funds have almost eliminated a decade-long Japan underweight, lifting average exposure to 13.64%, just 0.22% below benchmark.</li>
<li>Japan has seen strong rotation in 2026, with an estimated $3.8bn of net inflows and broadening ownership across Industrials, Financials and Materials.</li>
<li>Stock selection is shifting towards semiconductors and industrial technology, led by Kioxia, Advantest and Sumitomo Electric, while established holdings including Nintendo and Sony lose ground.</li>
</ul>


Global Ex-USA funds have almost eliminated a decade-long Japan underweight, lifting average exposure to 13.64%, just 0.22% below benchmark.
Japan has seen strong rotation in 2026, with an estimated $3.8bn of net inflows and broadening ownership across Industrials, Financials and Materials.
Stock selection is shifting towards semiconductors and industrial technology, led by Kioxia, Advantest and Sumitomo Electric, while established holdings including Nintendo and Sony lose ground.


<ul>
<li>On Holding AG’s double-digit sell-off reflects disappointment with 2026 guidance rather than weak execution — a reminder that premium growth stocks are punished when expectations outrun delivery.</li>
<li>Asics Corporation trades on a lower multiple, with 2026 margin expansion and record profits already guided, leaving less valuation risk embedded in its shares.</li>
<li>The key vulnerability is Japan’s high-margin inbound tourism boom; any slowdown in Chinese or US visitor spending would disproportionately pressure group profits despite solid global momentum.</li>
</ul>


On Holding AG’s double-digit sell-off reflects disappointment with 2026 guidance rather than weak execution — a reminder that premium growth stocks are punished when expectations outrun delivery.
Asics Corporation trades on a lower multiple, with 2026 margin expansion and record profits already guided, leaving less valuation risk embedded in its shares.
The key vulnerability is Japan’s high-margin inbound tourism boom; any slowdown in Chinese or US visitor spending would disproportionately pressure group profits despite solid global momentum.


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 (7096) | the Tiger Outgrows Its Cage

Onitsuka Tiger's shift towards luxury status prompts strategic separation for future growth and expansion opportunities, but potential risks...

Mark Chadwick

ASICS (7096)| SportStyle Momentum Drive Record Results

ASICS reports record Q1 sales and profitability driven by premiumization and strong performance in SportStyle and Performance Running, despite...

Mark Chadwick

Asics Closes in on ¥1 Trillion but Still Lacks Support at Home

Asics had a record year in FY2025 with Japan leading growth, but needs to improve brand perception among Japanese consumers through direct store...

Michael Causton

Japan: Underweight No More?

Global Ex-USA funds have almost eliminated their decade-long Japan underweight, as rising allocations and strong inflows drive rotation towards...

Steven Holden

Asics (7936) | Keeping Pace

Investors punish On Holding AG for disappointing 2026 guidance, while Asics Corporation's lower multiple offers less valuation risk. Japan's...

Mark Chadwick

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

ASICS (7096) | the Tiger Outgrows Its Cage

​Onitsuka Tiger's shift towards luxury status prompts strategic separation for future growth and expansion opportunities, but potential risks...

Mark Chadwick

ASICS (7096)| SportStyle Momentum Drive Record Results

​ASICS reports record Q1 sales and profitability driven by premiumization and strong performance in SportStyle and Performance Running, despite...

Mark Chadwick

Asics Closes in on ¥1 Trillion but Still Lacks Support at Home

​Asics had a record year in FY2025 with Japan leading growth, but needs to improve brand perception among Japanese consumers through direct store...

Michael Causton

Japan: Underweight No More?

Global Ex-USA funds have almost eliminated their decade-long Japan underweight, as rising allocations and strong inflows drive rotation towards...

Steven Holden

Asics (7936) | Keeping Pace

​Investors punish On Holding AG for disappointing 2026 guidance, while Asics Corporation's lower multiple offers less valuation risk. Japan's...

Mark Chadwick

Onitsuka Tiger's shift towards luxury status prompts strategic separation for future growth and expansion opportunities, but potential risks...

ASICS reports record Q1 sales and profitability driven by premiumization and strong performance in SportStyle and Performance Running, despite...

Asics had a record year in FY2025 with Japan leading growth, but needs to improve brand perception among Japanese consumers through direct store...

Investors punish On Holding AG for disappointing 2026 guidance, while Asics Corporation's lower multiple offers less valuation risk. Japan's...