Japan Specialist

Mark Chadwick

Equity Bottom-Up

<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

<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.


Thematic (Sector/Industry)

<ul>
<li>Japan's tech market sees major movement with Carlyle's 120% premium bid for Kaonavi, highlighting the stark valuation gap between Japanese and US SaaS companies.</li>
<li>Many Japanese software firms trade at significantly lower multiples (4x) versus US peers (8x), attracting private equity attention.</li>
<li>Japanese stocks ended the week up around 1%. Global macro concerns and inflation lifting bond yields and raising concern over a stronger yen. </li>
</ul>


Japan's tech market sees major movement with Carlyle's 120% premium bid for Kaonavi, highlighting the stark valuation gap between Japanese and US SaaS companies.
Many Japanese software firms trade at significantly lower multiples (4x) versus US peers (8x), attracting private equity attention.
Japanese stocks ended the week up around 1%. Global macro concerns and inflation lifting bond yields and raising concern over a stronger yen. 


Japan Strategy Weekly | Carlyle's Kaonavi Deal Signals a Shift in Japanese Valuations

<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

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)| 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

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

Japan Strategy Weekly | Carlyle's Kaonavi Deal Signals a Shift in Japanese Valuations

Carlyle's bid for Kaonavi underscores valuation gap between Japanese and US SaaS companies, attracting private equity interest. Japanese stocks up...

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

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

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

Japan Strategy Weekly | Carlyle's Kaonavi Deal Signals a Shift in Japanese Valuations

​Carlyle's bid for Kaonavi underscores valuation gap between Japanese and US SaaS companies, attracting private equity interest. Japanese stocks up...

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 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...

Carlyle's bid for Kaonavi underscores valuation gap between Japanese and US SaaS companies, attracting private equity interest. Japanese stocks up...

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