ASICS (7936) Q1 2025 earnings summary

Executive summary

• Q1 FY25 net sales reached a record 208.3 billion yen, up 19.7% year-over-year, with all categories and regions contributing to growth.

• Operating profit rose 31.6% to 44.5 billion yen, with operating margin improving by 2.0ppt to 21.4%.

• Profit attributable to owners increased 18.4% to 31.6 billion yen, both record highs.

• Gross margin improved by 1.3ppt to 55.8% due to a strategic shift to high-end products and improved channel mix.

• All regions and major categories posted significant sales growth, with notable strength in SportStyle and Onitsuka Tiger.

Financial highlights

• Net sales: 208.3 billion yen (+19.7% YoY); operating profit: 44.5 billion yen (+31.6% YoY); profit: 31.6 billion yen (+18.4% YoY).

• Gross margin: 55.8% (+1.3ppt YoY); operating margin: 21.4% (+2.0ppt YoY).

• E-commerce sales grew 22.2% YoY to 35.6 billion yen; retail sales up 32.2% YoY.

• SG&A expenses increased 17.7% YoY, but SG&A to sales ratio improved to 34.4% (-0.7ppt YoY).

• Days Inventory Outstanding improved by 18 days YoY to 148 days.

Outlook and guidance

• Full-year FY25 forecast unchanged: net sales 780.0 billion yen (+15.0% YoY), operating profit 120.0 billion yen (+19.9% YoY), profit attributable to owners 78.0 billion yen (+22.2% YoY).

• Dividend forecast raised to 26.0 yen annual (from 20.0 yen in FY24).

• U.S. tariff and freight cost impact estimated up to 5.0 billion yen.