Key facts
- Asics is spinning off its Onitsuka Tiger business into a new entity, OT Group Corp., effective January 1.
- The spin-off aims to speed up decision-making and enhance the brand's global competitiveness.
- Onitsuka Tiger sales increased 43% year-on-year to 136.5 billion yen ($851 million) in the last fiscal year.
- The business unit achieved a profit margin of nearly 38%, the highest among Asics' five core categories.
- Conflicts in management approach between Asics America and Onitsuka Tiger contributed to the decision.
Japan's Asics Corp announced it will spin off its high-end Onitsuka Tiger business into a new entity, OT Group Corp., effective January 1. The move is intended to accelerate decision-making and boost the brand's global competitiveness.
Onitsuka Tiger has been a significant growth driver for Asics, contributing to four consecutive years of record profits. Sales of the brand jumped 43% year-on-year to 136.5 billion yen ($851 million) in the fiscal year ending December, driven by strong demand in Europe, inbound tourism to Japan, and a weaker yen. The business unit also posted the highest profit margin among Asics' five core categories, at nearly 38%.
Shares of Asics rose nearly 2% in Tokyo, outperforming the broader TOPIX index, which fell 0.7%. The company had previously forecast another year of record profits.
The Onitsuka Tiger brand traces its roots to Asics' predecessor, founded in 1949 by Kihachiro Onitsuka, who sought to make sports shoes to foster healthy young people in post-war Japan. The brand name 'Tiger' was inspired by the strength and agility of Asian animals.