ASICS (7936) Q3 2024 earnings summary

Executive summary

• Net sales reached a record 525.4 billion yen for Q3, up 17.3% year-over-year, with double-digit growth in all regions and channels, driven by Performance Running, SportStyle, and Onitsuka Tiger categories.

• Operating profit hit a record 91.5 billion yen, up 64.0% year-over-year, with net profit rising 61.2% to 64.9 billion yen, both at record highs for the second consecutive year.

• Gross margin improved to 55.4%, and operating margin to 17.4%, reflecting a shift to high-end products and improved channel mix.

• SportStyle and Onitsuka Tiger, especially in North America and Greater China, were key growth drivers.

• Credit rating upgraded to A+ (Stable); included in major stock indices such as JPX Prime 150 and MSCI Japan.

Financial highlights

• Net sales: 525.4 billion yen (+17.3% YoY); operating profit: 91.5 billion yen (+64.0% YoY); net profit: 64.9 billion yen (+61.2% YoY).

• Operating margin: 17.4% (+4.9ppt YoY); gross margin: 55.4% (+4.2ppt YoY).

• Basic EPS: 89.61 yen (reflecting 4-for-1 stock split effective July 1, 2024).

• SG&A expenses rose 14.7% YoY, but SG&A to sales ratio improved to 38.0%.

• Days Inventory Outstanding improved by 23 days YoY to 133 days.

Outlook and guidance

• FY24 net sales forecast raised to 680.0 billion yen (+19.2% YoY), with operating profit expected to reach 100.0 billion yen (+84.4% YoY).

• Net profit forecast at 63.0 billion yen (+78.6% YoY); basic EPS forecast at 86.93 yen.

• Dividend forecast for FY2024 is 65.00 yen per share (post-split basis).

• Excluding currency effects, net sales expected to rise 15.2% and operating profit 80.0% YoY.

• All categories and regions expected to achieve record results, with strong momentum in key categories.