Asics to Spin Off Onitsuka Tiger Brand into Independent Subsidiary by 2027
Japanese sportswear company Asics announced plans to transfer its Onitsuka Tiger brand into a wholly owned subsidiary called OT Group, effective January 1, 2027. The move is designed to accelerate decision-making for a brand that has posted a 43% sales increase and a nearly 38% profit margin, driven by retro sneaker demand and inbound tourism to Japan. The spinoff signals Asics' intent to give Onitsuka Tiger greater strategic independence, including a planned re-entry into the US market.
Asics announced on Wednesday that its board has approved a plan to spin off the Onitsuka Tiger brand into a wholly owned subsidiary, OT Group, through an absorption-type company split targeting completion on January 1, 2027. The restructuring is intended to streamline decision-making for the fast-growing brand, which posted sales of 136.5 billion yen (approximately $851 million) in 2025, a 43% year-on-year increase, and achieved a profit margin of nearly 38%, the highest among Asics' five core categories. Ryoji Shoda, named CEO of OT Group, cited management conflicts between Asics America and Onitsuka Tiger as a factor in the brand's 2023 withdrawal from the US market, and said the spinoff would allow headquarters in Japan to manage the brand's global strategy more directly, including a planned flagship store opening in Los Angeles in February. Additional flagship stores are planned in Tokyo's Shinjuku district, Nagoya, Shanghai, Milan, and Seoul by September. Onitsuka Tiger's popularity has been fueled by a global revival of retro-inspired footwear, inbound tourism to Japan, a weaker yen, and cultural touchstones such as Uma Thurman's iconic yellow-and-black Tai-chi sneakers in Quentin Tarantino's 2003 film 'Kill Bill.' Asics has no plans to take OT Group public, and the company's shares have risen roughly 20% in 2026 following a roughly sevenfold increase over the past five years, giving it a market value of approximately $20 billion.
What's missing
Neither source details the specific governance structure or financial arrangements between Asics and OT Group post-spinoff, nor do they clarify whether minority stakes or external investment in OT Group are being considered for the future despite the current no-IPO stance.
What different sources said
- The Japan TimesCenter
Asics will spin off trendy shoe brand Onitsuka Tiger
- Channel NewsAsiaCenter
The Onitsuka Tiger story: From an octopus-inspired sole to a Nike link
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