Asics lifts profit outlook, dividend and buyback as Onitsuka Tiger booms
Strong Q1 sets up profit upgrade Asics' first-quarter operating profit jumped 37% to 60.8 billion yen, already 35.5% of the full-year plan, making an upward revision almost certain. That early strength told investors demand for its shoes and apparel was running ahead of expectations, pushing the shares higher.
It is the first sign in the period that earnings were beating plan, which later drove upgrades.
Profit and dividend forecasts raised Asics lifted its full-year net profit forecast to 120 billion yen, up 21.6%, and raised the annual dividend to 44 yen from 38 yen, citing strong Onitsuka Tiger sales in Japan and SportStyle in Europe. Higher expected profit and cash returned to shareholders make the stock more attractive.
It is the core earnings upgrade that directly raised the value investors expect from the company.
Record buyback and share cancellation Asics said it will buy back up to 70 billion yen of its own shares, about 2.82% of shares outstanding, and cancel 25 million shares. Buying back stock reduces the number of shares, lifting earnings per share, and signals management believes the shares are still good value.
It is a fresh capital action that directly supports the share price by shrinking the share count.
Broad-based growth, not just a weak yen First-half revenue rose 32.7% and operating profit 48.5%, with gains in every region and category. Even stripping out currency effects, revenue rose 22.0% and profit 37.7%, showing real business strength. That reassured investors the growth is durable, not just a weak-yen boost.
It shows the earnings beat is genuine and broad, the main reason the stock hit a record high.