ASICS (7936) Q4 2024 earnings summary

Executive summary

• Net sales reached a record 678.5 billion yen, up 18.9% year-over-year, with double-digit growth in all regions and channels.

• Operating profit surged 84.7% to 100.1 billion yen, with operating margin at 14.8%, among the highest in the industry.

• Net profit attributable to owners of parent rose 80.9% to 63.8 billion yen, aided by gains from sale of cross-shareholdings.

• Significant progress in global brand recognition, digital transformation, and sustainability initiatives.

• All major categories and regions delivered significant sales and profit growth.

Financial highlights

• Net sales: 678.5 billion yen (+18.9% YoY); operating profit: 100.1 billion yen (+84.7% YoY); ordinary profit: 92.6 billion yen (+82.8% YoY).

• Gross margin improved by 3.8ppt to 55.8% due to a strategic shift to high-end products and improved channel mix.

• Basic EPS increased to 88.3 yen (from 48.1 yen in FY23); ROE: 29.1% (vs. 18.8% prior year).

• SG&A expenses increased 14.9% YoY, but SG&A to sales ratio improved to 41.0% (-1.5ppt).

• Operating cash flow reached 104.6 billion yen; cash and cash equivalents at year-end: 126.97 billion yen.

Outlook and guidance

• FY25 net sales forecast: 780.0 billion yen (+15.0% YoY); operating profit: 120.0 billion yen (+19.9% YoY); net profit: 78.0 billion yen (+22.2% YoY).

• Operating margin expected to rise to 15.4%; raised 2026 mid-term targets: operating profit ≥130 billion yen, margin ≥17%, ROA ~15%.

• Annual dividend projected at a record 26.0 yen per share.

• All categories and regions expected to continue double-digit growth, with focus on high-end products and DTC channels.

• Dividend payout ratio: 22.7% for FY2024.