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Insider Ties: ASICS Listed on Dow Jones Sustainability Asia/Pacific Index 2016

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Source: http://corp.asics.com/en/press/article/2016-09-09-1

I haven’t really analyzed Asics. I do know that like Nike, Asics has a gigantic warehouse here in Memphis (It’s actually in Byhalia, MS. but it’s less than 15 minutes away from the southeast of Memphis.) I also know that they moved this warehouse from Southhaven, MS. to a much larger plot. Since this is Insider Ties, I also have to say that Asics is a shoe that is Brand Gated on Amazon for third party sellers. What does this mean? Asics is attempting to get control of their market share. The Brand Gating happened almost two years ago. That was in 2014. Let’s get to analyzing.

  1. 5 years ago Asics sat at 14/share. They have seen some growth over the last 5 years that was fairly consistent.
  2. In 2014 the shares grew from 17 to 24. While it may not have been a direct reflection of Brand Gating, it was definitely greater attention to detail and lifestyle collabs with Ronnie Fieg and Commonwealth gave the brand a better standing in the sneaker community.
  3. In 2015 the stock climbed to 30/share. It has consistently declined over the last year to a low of 17 and currently sits at 20/share.

After a move of warehouses, and opening of an employee store and an attempt to cash in on the retro running, casual athletic market… Asics has gone flat. Even with more shelf space in Footlocker the shoes are consistently marked down to 39.99 to 79.99.

Although Asics is touting their sustainability in the source article, I have to think that their running shoe market is being cut into by brands like Hoka One One, Newton Running and Astra. Add to this that the retro market requires constant collaboration and you have a stock that I think isn’t one to look at. If Asics doesn’t begin to crossover a bit more into lifestyle and increase their digital footprint they could possibly be headed back to the 17/share prices this year.