Third Bridge Library: Asics

^{The content below is provided for information purposes only. It is not intended to amount to advice on which you should rely.}

^{Third Bridge does not make any warranties or representations, expressed or implied as to the currency, accuracy, completeness, timeliness or fitness for any particular use of the content below. Third Bridge accepts no liability for the content or for any errors, omissions or inaccuracies in respect of it.}

INTERVIEW: Asics – The Roaring Tiger – Onitsuka Tiger's Brand Equity & Growth Opportunities

Key Insights 

1. Onitsuka Tiger's success largely depends on the Mexico 66 line, accounting for 70-80% of sales, as specialist highlights the biggest challenge over the next 3-5 years is to build a new pillar
2. Specialist sees Onitsuka Tiger's gross margin trending within 70-75%, given the solid brand control through D2C and potential benefits from higher price points. Production allocation varies and remains dependent on Asics' planning, roughly splitting evenly between Indonesia and Vietnam
3. Onitsuka Tiger's D2C stores in Europe target a payback period of 2-3 years as EBITDA margin elevates to c10%. Specialist notes the risk of potential margin hits as new stores ramp up. E-commerce market expansion relies heavily on back-end marketing investments 
4. Onitsuka Tiger "has everything to be successful in the US", with gross margin management and channel strategy being key. Specialist takes a cautious stance on the brand's expansion into other luxury lifestyle categories

Clients can access the full transcript.
Not yet a client? Request a trial.

INTERVIEW: Asics – US Business Update & Profitability Improvement Drivers

Key Insights 

1. Specialist considers Asics' current US wholesale mix of c50% Dick's Sporting Goods, c25% run speciality and c25% others as healthy, and still sees room for model portfolio optimisation by exiting the family channel, where margins trend in low 40s, compared to high 40s at sporting goods and >50 for run speciality and D2C
2. Asics' 2025 guidance of 1.4% topline growth for North America appears moderate given the economic uncertainties, while scaling distribution in the Sportstyle category would fuel double-digit growth in a normalised environment
3. Assuming the 10% base tariff holds, specialist anticipates 4-5% price hikes as brands absorb the balance. Offering value options in the USD 100-120 segment is key as consumers trade down, while Nike stands in a unique position to factor in tariffs and pricing in accelerating its innovation pipeline

Clients can access the full transcript.
Not yet a client? Request a trial.

INTERVIEW: Asics – EMEA Business Update & 2025 Growth Outlook

Key Insights 

1. While consumer sentiment continues to sit high with the more authentic running brands vs larger brands, specialist expects Nike or Hoka to deliver the next generation of innovation in coming years
2. Price sensitivity remains low for the premium segment that Asics focuses on. Some highest-price models have seen trading down as retailers shifted their assortments, particularly in southern Europe, but the impact is limited
3. The EMEA market is diversifying more from the Nike and Adidas-dependent model. Specialist expects room for Asics to "easily double" SportStyle "without being too risky" and capture the untapped women's segment for Performance Running
4. Asics guiding for 17% sales growth in Europe in 2025 signals capitalisation on SportStyle, with both JD and Foot Locker likely coming on board, while specialist questions whether this is sustainable and expects an increase in marketing expenses moving forwards

Clients can access the full transcript.
Not yet a client? Request a trial.