STOCKS | Onitsuka Tiger Mania Drives Asics Sales and Profit Growth

Tourists visiting Tokyo are flocking to at least one Onitsuka Tiger store, where some line up for numbered tickets before entering and others change into newly bought shoes on the street. According to Sina Finance, the weak yen has made the Japanese lifestyle brand cheaper for visitors to buy than in their home countries. Fans praise the shoes for their retro look and lighter feel compared with other popular chunky sneakers. The craze has helped lift revenue and profit at Asics, the Japanese footwear company behind Onitsuka Tiger. According to Sina Finance, Onitsuka Tiger sales rose 36% year on year to 89.5 billion yen, or about $574 million, in the six months through June. Asics reported overall revenue of $3.4 billion in the same period, while profit jumped about 50%. Asics announced in June that it would spin off Onitsuka Tiger into a wholly owned subsidiary to speed up decision-making for the fast-growing business. Goldman Sachs Tokyo retail and consumer research head Sho Kono said a recent Y2K fashion trend among younger consumers has also supported the brand. He added that the company has managed the brand's popularity well by slowing store expansion and refusing discount promotions to preserve Onitsuka Tiger's premium image. There are currently no standalone Onitsuka Tiger stores in the United States, and a new flagship store is planned to open in Los Angeles early next year.