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Investors reacted positively to the news: Asics shares rose 2.7% during trading in Tokyo, despite a 0.7% decline in the broader TOPIX index, according to Reuters.
According to the company’s statement, effective January 1, the Onitsuka Tiger business will be transferred to OT Group Corp, which will remain 100% under Asics’ control. Management expects that the new structure will allow the brand to respond more quickly to changes in demand and compete more effectively in the premium sports fashion segment.
This is a rare move for Asics: the company is effectively granting one of its most successful assets greater autonomy after several years of rapid sales growth and record profitability.
In recent years, Onitsuka Tiger has become the group’s main growth driver. Last year, the brand’s revenue jumped 43% to 136.5 billion yen (about $851 million). This growth was driven by strong demand in Europe, as well as an influx of foreign tourists to Japan who actively purchase the brand’s products.
The business’s profitability is even more impressive: Onitsuka Tiger’s operating margin approached 38%, the best result among all of Asics’ key divisions.
In February, the company had already announced that it expects to set a new profit record this year as well, continuing to capitalize on the global boom in athletic footwear and lifestyle brands.
Onitsuka Tiger’s history dates back to post-war Japan. The brand was founded by Kihachiro Onitsuka in 1949. He believed that sports could help the country recover from the war and began producing athletic shoes for young people. Onitsuka released his first basketball sneakers under the name Tiger, inspired by the image of the tiger—a symbol of strength, endurance, and agility.
Today, Onitsuka Tiger is known worldwide for its retro design and minimalist style, and its spin-off as a separate company underscores the brand’s growing importance to the future of the entire Asics Group.
