Asics boosts profit estimate on return of the dad sneaker

Asics Corp. raised its full-year operating profit forecast by 64% on rising demand for its practical running shoes in Japan and abroad. 

The company, seller of the Onitsuka Tiger brand, expects record operating profit of ¥95 billion ($596 million) for the year through December, it said Friday. It also lifted guidance for sales and net profit to all-time highs.

The languishing yen is giving a boost, the company noted. Demand outside of Japan surged in the second quarter, growing 38% from a year earlier in Greater China, 30% in Southeast and South Asia, and 16% in the US. Domestic sales were up 24%.

The outlook wasn’t quite so rosy for Asics even as recently as 2020, when revenue growth had turned negative. These days, revival models like the Gel-1130 and Gel-Kayano 14, worn by celebrities like Hailey Bieber and fitness buffs alike, are expected to continue performing well, the company said.

Asics also announced the same day that it would unwind all cross-shareholdings, as well as conduct a secondary share sale, with holders such as MUFG Bank and Sumitomo Mitsui Banking Corp. planning to offload as many as around 85 million shares.