By Jason Chau


Asics Corp. is spinning off its Onitsuka Tiger business as it seeks to turn the popular footwear brand into a luxury lifestyle label.

The Japanese sportswear company said Wednesday that its board has decided to transfer Onitsuka Tiger and its regional entities to OT Group Corp, a wholly owned subsidiary, through an absorption-type company split.

Under the new arrangement, OT Group will become the global headquarters for the entire Onitsuka Tiger business and will assume all of its assets, liabilities and obligations.

Asic said it aims to complete the transfer by Jan. 1, 2027.

The company's Tokyo-listed shares gained as much as 4.9% on Wednesday before reversing gains and closing 0.7% lower. The stock is up 17% year to date, extending eight years of continuous growth.

Onitsuka Tiger, a nearly eight-decade-old footwear brand, has been enjoying rapid growth as it capitalizes on the renewed popularity of retro sneakers and streetwear. The brand has expanded beyond shoes into clothing and accessories.

The business posted a 34% increase in net sales and 45% profit growth last quarter, driven by a surge in inbound tourists to Japan. It is also expanding aggressively overseas, with recent new flagship store openings across Europe and a planned return to the U.S. market in 2027.

The reorganization will enable faster decision-making, boost the brand's global competitiveness and strengthen its corporate governance, Asics said.

"With this spin-off, Onitsuka Tiger gains the flexibility to operate more independently from Asics," Bernstein analysts Yugo Shima and Ran Yang said, describing the new governance structure as a de facto "one country, two systems" arrangement.

Meanwhile, the spunoff entity will continue to benefit from Asics's resources, minimizing the impact on the group's consolidated financials, the analysts added.


Write to Jason Chau at jason.chau@wsj.com


(END) Dow Jones Newswires

06-10-26 0343ET