Salomon, Arc’teryx help Amer Sports defy downturn with athleisure bet

In 2020, Carlo Aragon started the ‘Salomonology’ Instagram page as a fashion moodboard to help him decide whether to invest $150 in a pair of Salomon XT-6s. He bought it, liking how the shoes looked “unorthodox.” Others did too — the account now has almost 150,000 followers, intrigued by how trail shoes can pair with streetwear. From IPO struggles to stock market darling Aragon’s Instagram fame mirrors the ascent of Amer Sports, the company behind Salomon. Since its New York Stock Exchange debut in February 2024, the Helsinki-based group, which also owns outerwear brand Arc’teryx and sports equipment maker Wilson, has nearly tripled its market value to $21 billion. It has outpaced peers like On Holding, Hoka parent company Deckers Outdoor and Anta Sports Products, the Chinese sporting goods giant that owns a 42% stake in Amer Sports. Amer Sports’ growth has beaten the consumer downturn by riding the outdoor activity wave. It’s among the mid-tier luxury brands offering shoppers high-quality goods that don’t break the bank. The numbers behind the hype: Beating expectations The bulk of this rally occurred recently, following first-quarter results that defied a rocky global economy. Sales topped expectations, and the company raised its outlook while others cut theirs. Growth of its Technical Apparel and Outdoor Performance divisions — which respectively house Arc’teryx and Salomon — boosted results, CEO James Zheng said in the most recent earnings call, highlighting the brands’ potential. While Salomon sneakers surpassed $1 billion in sales in 2024, it’s a fraction of the $180 billion global sneaker market, and Arc’teryx is “very under-penetrated globally,” he said in the call. Amer Sports declined a request for an interview with an executive. Reversal of fortunes Amer Sports wasn’t always this successful. Shares remained subdued after the IPO due to high debt, low trading volume, and significant exposure to a lagging Chinese economy, said Laurent Vasilescu, an analyst at BNP Paribas Exane, who rates the stock outperform. Then in December, Amer Sports issued shares to pay down most of its debt. This move reduced leverage and boosted trading volume, alleviating two of the three primary investor concerns, Vasilescu said in an interview. China, which accounts for about 30% of the company’s revenue, remains a concern, though sales in the market have bested expectations every quarter since the IPO. Premium sportswear and outdoor market gear is one of the fastest-growing consumer segments in China, attracting younger and female consumers, as well as luxury shoppers, CFO Andrew Page said on the earnings call. Glamping, short for glamorous camping, and “gorpcore,” wearing outdoor clothes as everyday wear, are trending in China, Vasilescu said. Amer Sports is also attracting middle- and upper-income customers who like the “quiet luxury” aesthetic and the upscale in-store shopping experience of its brands, he added. Celebrity endorsement gold: When Hollywood meets hiking gear That’s happening in the U.S. too, where celebrities like Timothée Chalamet and Bella Hadid have been spotted wearing Salomon shoes. Sales in its Americas division have grown every year since 2020, the earliest publicly available results, though at a slower pace than Greater China’s, which is estimated to overtake Europe, the Middle East and Africa as Amer Sports’ second-largest market by revenue this year. One fan is Gabriella Gonzalez, a 29-year-old stylist who popped by a Salomon store in New York City’s SoHo shopping district on a Friday afternoon. She praised the breathability, waterproofing and style of her pink-and-black XT-6 shoes. “They make my outfits pop,” she said. About 1km away is Arc’teryx’s largest U.S. store. Customer Chris Rojes said he doesn’t mind paying more for Arc’teryx’s gear over other brands. “You feel more special in them.” Arc’teryx distinguishes itself from other outdoor apparel brands like Patagonia and VF Corp’s The North Face through a “much higher level of premiumization,” said TD Cowen analyst John Kernan, who has a buy rating on Amer Sports. Despite higher prices, consumers are willing to pay for Arc’teryx’s “leading innovation.” Declining consumer brand loyalty and a growing desire for variety also creates an opportunity for Salomon and Arc’teryx to gain market share from industry leaders like Nike and Adidas, Vasilescu said. Global expansion challenges: The uphill battle ahead To keep flying high, Amer Sports needs to go global, analysts said, warning that it’s an uphill battle. “We believe that the global brand rollout will not be easy” due to Arc’teryx’s high price points and intense competition in Western outerwear markets, said HSBC analyst Akshay Gupta, who has a hold rating on the company. Morningstar analyst Ivan Su, who has a sell rating, believes Amer Sports’ would need a compound annual growth rate of 20% over the next five years to support its currently high valuation, which would require “near flawless execution” globally. By Rachel Phua and Rachel Yeo Anta’s masterstrokes – acquiring Amer Sports, dodging controversy: Part 1 Cracking the code of Anta’s success vs. Fosun’s luxury struggle: Part 2 Canadian craze: The surging popularity of Arc’teryx, Lululemon in China China’s sportswear surge: A golden opportunity for luxury Lululemon fights to keep its athleisure crown

Salomon, Arc’teryx help Amer Sports defy downturn with athleisure bet

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Published June 29, 2025

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Salomon, Arc’teryx help Amer Sports defy downturn with athleisure bet