Onitsuka Tiger is looking at life beyond its famous stripes as the footwear brand prepares to transform into a luxury lifestyle label distinct from Asics.

The 77-year-old sneaker maker is set to be spun off from parent Asics on Jan. 1 to capitalize on a resurgence in interest for retro aesthetics and Japanese style. The move is also aimed at distinguishing the brands, which currently share the iconic stripe motif: Asics will specialize in sports and Onitsuka Tiger will concentrate on fashion and lifestyle.

¡°For the past decade or so, we¡¯ve believed that we needed to become a brand that can sell, even without the stripes,¡± said Ryoji Shoda, CEO of OT GROUP, the wholly owned subsidiary that will absorb the Onitsuka Tiger business. ¡°Otherwise, it starts to feel like we are selling because of our affinity with Asics.¡±

Onitsuka Tiger got its start in 1949 with a focus on sports shoes, but rose to wider prominence in the early 2000s as its relaunch coincided with the appearance of a pair of yellow and black sneakers in Quentin Tarantino¡¯s Kill Bill films. The more recent revival in demand for vintage-look sneakers, coupled with a surge in tourism to Japan and a weaker yen, is sparking a sales jump and reinforcing the case for handing more control to the brand.

The company is a major moneymaker for Asics. It reported an almost 60% surge in profit last year, trails only Asics¡¯ performance running segment in profit and reported margins of about 38%.

Onitsuka Tiger¡¯s popularity is also reigniting U.S. ambitions after the company closed its physical stores in 2023 due to differences in strategy between the brand and Asics. It¡¯s set to open a store in Los Angeles in February 2027 that will serve as a litmus test of demand, with the shoemaker then deciding on any further expansion.

¡°For the first year, we plan to operate solely with the Los Angeles store,¡± Shoda said. ¡°In America, the business of opening many stores and taking sales through store expansion is becoming somewhat out of trend. Rather than that, I think it is more important to have one very large store that clearly communicates the brand¡¯s direction.¡±

The approach underscores a key hurdle for Onitsuka Tiger as it tries to rebuild its physical presence from scratch while maintaining a premium footwear image and, ultimately, transitioning into a full-blown luxury lifestyle brand.

¡°The challenge will be to strike a balance between scaling up, expanding overseas but keeping the ¡®rare Japan exclusive¡¯ wow factor,¡± said Marguerite LeRolland, senior global insight manager at EuroMonitor International.

Shoda said that his luxury plans won¡¯t necessarily come with a price hike. Onitsuka Tiger¡¯s sneakers are...