Asics Corp. announced on June 10, 2026, its decision to spin off the Onitsuka Tiger shoe business into a separate company, OT Group Corp., effective January 2027. This move aims to significantly speed up operations and enhance the brand's value by fostering faster decision-making for the nearly 80-year-old brand. Ryoji Shoda, current head of the Onitsuka Tiger business, will serve as president and CEO of the new company.
Onitsuka Tiger has been a key profit driver for Asics, with surging sales leading to four consecutive years of record profit. In 2025, sales jumped 43% from the previous year to 136.5 billion yen ($851 million), and the business posted an impressive profit margin of nearly 38%, which is the highest among Asics' five core categories. This success has been attributed to a tourism boom, strong demand for its retro-inspired sports shoes, and a weaker yen.
The spin-off will allow Onitsuka Tiger to pursue more flexible strategies. The brand, known for its minimalistic designs and popularized by Uma Thurman in "Kill Bill," plans extensive global expansion. While it temporarily withdrew from the U.S. in 2023 due to management conflicts within Asics America, it plans to re-enter the U.S. with a flagship store in Los Angeles in February 2027. Other upcoming store openings include Shanghai (July 2026), Tokyo (July 2026, largest flagship), Nagoya (August 2026), Milan (September 2026), and Seoul (by September 2026). The company also opened flagship stores in London and Paris in 2025. Although there are no plans to take OT Group public, analysts suggest the spin-off could lay the groundwork for future changes in ownership structure, allowing the market to recognize it as a fundamentally different business with different economics.
However, analysts also recognize potential challenges. While the margins are currently at a level closer to luxury brands, sustaining these "exceptional margins" might be difficult due to increased costs associated with becoming a standalone business, particularly its capital-intensive strategy of opening flagship stores. Some experts also caution that fashion trends are fickle, and the brand's popularity, especially for models like the Mexico 66, could fade in the coming years, potentially affecting its margins.
