Japanese sportswear group Asics is carving out its fashion-forward Onitsuka Tiger label into a separate entity, aiming to unlock the brand's potential beyond athletic wear. The striped sneakers, famously worn by Uma Thurman in Kill Bill and Bruce Lee, have become cult favorites among style-conscious consumers rather than just runners.

The move comes as Asics rides a strong growth trajectory, with sales rising roughly 14% annually since 2019 and earnings climbing 50% over the same period. A weaker yen has boosted foreign income, while cost controls and focus on premium products have improved margins. These gains pushed Asics shares up more than six-fold, reaching a $20bn market valuation.

Initially, the separation won't significantly impact finances since Onitsuka Tiger will remain a wholly owned subsidiary. However, giving the brand independent manufacturing and marketing responsibilities could better position it for the fashion market. Onitsuka Tiger contributes approximately 25% of group profits, yet Asics trades at 17 times expected operating profit—below luxury peers like Zegna and Kering at 22 times.

This restructuring signals Asics' recognition that fashion brands command higher valuations than traditional sportswear. While executives insist a full spin-off isn't planned, investors may eventually push for either a premium sale or separate listing to maximize the brand's standalone worth.