ASICS (7936) Q2 2024 earnings summary

Executive summary

• Net sales for the six months ended June 30, 2024, rose 18.0% year-over-year to ¥342.2 billion, with operating profit up 75.5% to ¥59.0 billion and net income up 70.3% to ¥42.2 billion, all reaching record highs.

• 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.

• Strategic initiatives included a 4-for-1 stock split, increased dividends, treasury share repurchase, and plans to sell all cross-shareholdings by year-end.

Financial highlights

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

• Gross margin reached 55.5%, operating margin 17.2%, both at record levels.

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

• Comprehensive income rose 59.0% to ¥67.5 billion.

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

Outlook and guidance

• Full-year 2024 forecast: net sales ¥660.0 billion (+15.7%), operating profit ¥95.0 billion (+75.2%), net income ¥58.0 billion (+64.4%), EPS ¥79.80 (post-split).

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

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