ASICS (7936) Q2 2024 earnings summary

Executive summary

• Achieved record highs in net sales, operating profit, and profit for H1 FY24, with net sales rising 18.0% to ¥342.2 billion, operating profit up 75.5% to ¥59.0 billion, and net income up 70.3% to ¥42.2 billion, driven by strong growth across all categories and regions.

• Gross margin improved in all categories, reaching 55.5%, with strategic focus on high-end products and channel mix optimization.

• Digital initiatives and e-commerce expansion contributed to robust sales and membership growth, with ASICS recognized for digital transformation.

• Strong growth in SportStyle and Onitsuka Tiger categories, each exceeding 50% year-over-year sales growth, and robust performance in Greater China with sales up over 30%.

• Upward revision of full-year guidance announced in July, with Mid-Term Plan 2026 targets now expected to be achieved in 2024.

Financial highlights

• Net sales: ¥342.2 billion (+18.0% YoY); operating profit: ¥59.0 billion (+75.5% YoY); net income: ¥42.2 billion (+70.3% YoY).

• Gross margin: 55.5% (+4.5ppt YoY); operating margin: 17.2% (+5.6ppt YoY), both at record levels.

• Basic EPS: ¥58.09 (post-stock split basis), up from ¥33.84 YoY.

• SG&A expenses: ¥131.1B (+14.6% YoY), with SG&A to sales ratio improved to 38.3%.

• Cash and cash equivalents at period end: ¥104.3 billion, down ¥9.0 billion from year-end 2023.

Outlook and guidance

• FY24 forecast: Net sales ¥660.0B (+15.7%), operating profit ¥95.0B (+75.2%), profit attributable to owners ¥58.0B (+64.4%), EPS ¥79.80 (post-split).

• Interim dividend of ¥40 and year-end dividend of ¥10 (post stock-split); dividend per share for FY2024 forecast at ¥40.00 (pre-split basis).

• No change to the revised full-year forecast announced July 12, 2024.

• All categories and regions expected to contribute to record-high profits.

• Mid-Term Plan 2026 targets expected to be achieved in 2024.