Asics Corp. has raised its profitability and sales bars in a new three-year strategy unveiled this week. The Japanese company wants to achieve a 12 percent operating margin in 2026 on 7-10 percent sales CAGR over forecasted FY23 revenues of ¥570 billion (€3.51b). To achieve those objectives, the group says it is targeting top market share in several categories globally and expanding its direct-to-consumer business. The company wants to increase membership in its OneAsics program to 30 million from an estimated 9 million today and have d-t-c account for 40 percent or more of its overall business.
One key Asics’ growth objective is to achieve the top market share in performance running footwear in Japan, Europe, and the US as it accelerates category growth in the key markets of India, Southeast Asia and Latin America. While it works to grow global performance running shoe sales by nearly 24 percent from FY23’s forecast of ¥287.0 billion to ¥355.0 billion (€2.19b) in FY26, it will also seek to improve the segment’s operating income margin to 20.0 percent.
Meanwhile, in the core performance sports footwear segment, the group wants to make tennis the brand’s top-performing business behind only performance running by implementing numerous ecosystem initiatives, strengthening its soccer business in both Japan and Australia, accelerating growth in volleyball and basketball, and expanding segment profitability through a regional focus on categories. Asics wants to expand the core performance segment by more than 28 percent to approximately ¥90.0 billion (€554.2m) annually with an operating income margin of 18.0 percent.
In Europe specifically, the company will aim to achieve number one market share status in France, Germany, the UK, Italy and Spain with an expanded Sportstyle presence and by taking advantage of the brand’s top status currently in running and tennis. Asics forecasts a sales CAGR of about 5 percent over the next three years in the geography as total European sales increase by 15 percent to €1.12 billion as operating income margin expands to 11.0 percent from FY23’s forecast of 9.5 percent.
Elsewhere, Asics sees much future growth being generated by a recovering China through omnichannel expansion efforts and by focusing on key growth cities. It intends to grow the market’s CAGR by 17 percent to 6.15 billion yuan renminbi (€789.6m) in sales in FY26 with a corresponding operating margin of 18.5 percent. The company will develop a Chinese version of its OneAsics program and work to accelerate sales growth in the tennis, Sportstyle, kids, and Onitsuka Tiger segments. Also in Asia, the group is forecasting about 25 percent sales expansion in Indonesia through grassroots activities and new marketing investments, approximately 25 percent growth in India through the promotion of local production and collaborations with startups, and about 80 percent sales growth in Vietnam through increased openings of own retail doors.
On the supply chain front, Asics wants to reduce its days inventory outstanding metric to 140 days by FY26, down from the estimated 170 days in FY23, through improved demand planning accuracy, better SKU efficiency, and consolidating its production system and procurement risk management efforts.
