ASICS Expands Influence in North America's Key Running Specialty Market
Asics has announced first-half results, showing solid growth across multiple regions and channels, including the all-important North American running specialty channel.
Net sales for the first six months of 2024 rose 18% to 342 billion yen, driven by strong sales across all categories, according to the Japanese sports brand. Gross profit rose 28.4% to 190 billion yen.
By category, performance running shoes sales rose 15.6%, core performance sports shoes rose 4.1%, apparel and equipment sales rose 3.5%, and Onitsuka Tiger net sales rose 55.1%. Sports style sales rose 63.8%, driven by strong demand for Vintage Tech shoes and generally strong demand in North America and Greater China.
By channel, the company said wholesale sales rose 0.1% due to a "strategic exit" from certain stores. E-commerce sales rose 23.6% from the previous year, and retail sales rose 24.8%.
In North America, net sales rose 21.2% to 67.7 billion yen, driven by strength in running and sports styles. Asics said it increased its share of the North American running specialty channel by 13.1% in June while reducing the number of entry-level models. Asics also grew sports style sales in the region by 155% in the first half of the year and reduced its number of owned retail stores to 72.
Asics has recently stepped up its efforts to take the top spot in the competitive running market, a strategy that largely depends on deepening its ties with the running specialty retail channel. Asics President and COO Mitsuyuki Tominaga told FN in a recent interview that the company is doubling down on running specialty products, creating innovative products, and considering its broader role in the running ecosystem, which may include additional services and experiences beyond core products.
In June, consumer insights firm Circana found that Asics was the fastest-growing footwear brand in the U.S. outdoor specialty market in the 12 months ending March 2024.
Outside the U.S., sales also grew by double digits in Japan, Europe, Greater China, and Southeast and South Asia.
Looking ahead, Asics expects full-year net sales of 660 billion yen, up 15.7% from the previous year. Operating profit is expected to rise 75.2% to 95 billion yen.