Asics Shares Down on Q3 Report

by · WWD
A look at an Asics retro-inspired running shoe.Asics

Asics Corp. shares tumbled Friday after the company posted third quarter results that missed analysts’ expectations.

The share price decline was the most since August 2024. At Friday’s close, shares dropped 14.34 percent, or 700 points, to 4,180 yen.

Asics saw strong demand across Europe, North America and Greater China. But while the company maintained its full-year operating income guidance at 195 billion yen, that fell short of analysts’ consensus estimate of 199.72 billion.

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Net sales for the third quarter were 805.1 billion yen, up from 625 billion yen a year ago. Profit for the quarter was 114.7 billion yen, up from 86.3 billion a year ago.

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In performance running, the company said all regions showed sales growth, which was up 15.8 percent year-over-year. For SportStyle, sales rose 70 percent year-over-year, with North America, Europe and Oceania showing “significant sales growth,” Asics said. And for Onitsuka Tiger, sales rose 34.6 percent year-over-year. Sales in Japan was driven by strong demand from inbound tourism, while Europe also showed significant sales growth.

By region, sales in Japan were up 24.2 percent. Sales across North America were up 25.5 percent year-over-year, while sales in Europe spiked 37.3 percent year-over-year.

Looking ahead, the company projected fiscal year net sales at 1.050 trillion yen from 810.9 billion yen a year ago, and profit for the year at 120.0 billion yen versus last year’s 98.7 billion yen. The fiscal year net sales projection is the same as what was guided when it posted second quarter results. The prior forecast for full year sales were 950.0 billion yen. Also remaining the same was its guidance for 120.0 billion yen in profits. Keeping the net sales and profit guidance means that growth momentum could be a concern for investors.

Separately, the 68-page mid-term plan through 2029 includes the previous disclosure to spin off its premium Onitsuka Tiger business in January 2027. And it said that it expects market growth for Asics, but also cautioned that it is essential to stay ahead of dynamic shifts in geopolitics and consumer behavior. Asics said what will become increasingly important is the need to build stronger consumer connections through brand experience, in addition to products.

Investors will need to analyze whether projections are doable, and what growth might be in future years.