Amer Sports, the parent company of Arc’teryx, Salomon, Atomic, Wilson, and other brands, filed its first annual report as a publicly traded company this week.
Amer debuted on the New York Stock Exchange Feb. 1, generating $1.5 billion in proceeds.
CEO James Zheng provided several interesting details about the company and its strategy in a letter to shareholders as part of the filing. Zheng has deep experience in the sporting goods industry, including previously holding senior roles at Adidas and Reebok in China.
In the annual report, Zheng highlighted the growing importance of the Chinese market to overall company results and the go-forward focus on the DTC channel.
“We believe we are unique in our ability to shift our business model from wholesale to DTC while driving higher operating profitability,” Zheng said in the report.
In 2023, DTC accounted for 36% of total company revenue, up from 22% in 2020. Amer owns 326 company stores globally.
When it comes to the Greater China market, that region now accounts for 19% of total company revenue. Amer has direct ties to China – China’s Anta Sports acquired the company in 2019 and, after the recent IPO, Anta Sports remains Amer Sports’ largest shareholder.
Strong 2023 Results for Amer Sports
During a challenging time in the outdoor industry, Amer managed to post impressive overall results in 2023.
Total revenue grew 23% to $4.37 billion, and gross margin expanded 240 basis points, according to the annual report.
Brand Highlights
Zheng listed a few brand highlights for its largest outdoor brands in his letter to shareholders:
Arc’teryx
- 2023 revenue grew 52%.
- Opened a 20,000-square-foot, four-story Shanghai flagship in January 2024.
- Hosted 25,000-plus participants around the world at Arc’teryx Academies.
- Launched the brand’s first in-house designed and developed footwear line in March 2024.
Salomon
- 2023 revenue grew 22% due to growth in footwear and China.
- Became official partner for the 2026 Milan-Cortina Olympic Games.
- Launched its first road running shoe, the Phantasm 2.
- Sponsored athlete Courtney Dauwalter became the first person to win the Western States 100, the HardRock 100, and the UTMB in a single season.
Confidence in Future
Zheng cited three main reasons why the company, which describes its operating model as “decentralized, brand-direct,” is bullish on the future, in his letter to shareholders.
“We believe Arc’teryx is a breakout growth story with unprecedented growth and profitability for the outdoor industry,” he said. “It is truly charting new territory with its disruptive DTC model and very strong competitive position. The growth and profitability of this franchise will fuel Amer Sports for years to come.”
In addition, the company believes Salomon, Wilson, and other Amer-owned brands have authentic heritage and premium products and are early in their “growth inflection.”
The company also believes its expertise in Greater China gives Amer and its brand a “clear competitive advantage,” Zheng said.
