Editor’s note: The Daily will be posting more stories with information from the IPO filing, including further details about Arc’teryx, Salomon, and Amer Sports’ expansion in China.
Updated at 4 p.m. with profitability numbers
Amer Sports, which owns Arc’teryx, Salomon, Atomic, and Peak Performance, among other sports brands, on Thursday filed its initial public offering with plans to trade on the New York Stock Exchange under the symbol AS.
The Helsinki, Finland-based company is going public with 21 underwriters including Goldman Sachs, JPMorgan, BofA Securities, Citigroup, and Morgan Stanley as joint book-running managers.
The company, which also makes Wilson tennis rackets, hasn’t disclosed an estimated price range or other deal terms.
Amer Sports went private in 2019, after a consortium led by China’s Anta Sports acquired it with an offer of more than $5 billion.
Outdoor Brands Post Strong Growth
Veteran outdoor industry analyst Matt Powell said he expects Amer Sports to narrow its focus around key brands Arc’teryx, Salomon, and Wilson with this announcement.
“They have a plan to get each of these brands to a billion dollars or more,” Powell said. “We know that Salomon is one of the hottest brands in the footwear market right now. Arc’teryx has been really strong for a couple of years. So these are three properties that could really yield tremendous results for them.”
Arc’teryx revenue was $941.2 million in the nine months ended Sept. 30, up 65% compared to the prior-year period.
Salomon revenue was $949.3 million in the nine months ended Sept. 30, up 34% compared to the prior-year period.
Atomic revenue was $160.7 million in the nine months ended Sept. 30, up 2.4% compared to the prior-year period.
Revenue On the Rise
Overall, Amer Sports reported a 30% revenue increase for the first nine months of 2023.
The company’s revenue was $3.05 billion in the nine months ended Sept. 30, compared with $2.35 billion a year earlier.
Companywide, wholesale channel revenue was $2.05 billion for the nine-month period ended Sept. 30, up 20% from the prior-year period.
DTC channel revenue was $1 billion for the nine months ended Sept. 30, up 57%.
E-commerce revenue was $445.4 million for the nine-month period ended Sept. 30, up 47%.
Retail revenue was $557 million for the nine months ended Sept. 30, up 65%.
In the EMEA region, revenue was $998.5 million for the nine-month period ended Sept. 30, up 23%.
In the Americas region, revenue was $1.23 billion, up 19%.
In Greater China, revenue was $593 million, up 68%.
In the Asia Pacific region, revenue was $235 million, up 52%.
Wholesale, DTC Channels Post Increases
For the technical apparel segment, which consists of Arc’teryx and Peak Performance, wholesale channel revenue was $386 million for the nine-month period ended Sept. 30, up 45% from the prior-year period.
DTC channel revenue was $656.7 million, up 67%.
In the outdoor performance segment, which consists of Salomon and Atomic, wholesale channel revenue was $916.9 million for the nine months ended Sept. 30, up 22.5%.
DTC channel revenue was $227.5 million for the same period, up 47% compared to the prior-year period.
Gross Margin Up, Net Loss Widens
Gross margin increased to 52.2% through September, compared to 49.4% for the same period last year.
When it comes to the bottom line, Amer’s net loss widened to $113.9 million for the first nine months of 2023, compared to a net loss of $104.4 million during the same period of 2022.
Adjusted net loss, which excludes discontinued operations, restructuring costs, impairment charges, and M&A expenses, was $94.2 million compared to a net loss of $75.5 million.
Adjusted EBITDA increased 61.3% to $422.1 million in the first nine months of 2023.
Public Challenges
As of Sept. 30, 2023, Amer Sports had over 330 owned retail stores and growing. The company employed more than 10,800 people across approximately 370 locations and in 41 countries.
Approximately 4,500 full-time employees were based in EMEA, approximately 3,700 full-time employees were based in the Americas, approximately 800 full-time employees were based in Greater China, and approximately 700 full-time employees were based either in the rest of Asia Pacific or in other locations.
Industry analyst Powell added that going public will offer some unique challenges for Amer Sports.
“Being a publicly traded company is vastly different than being privately held,” he said. “You have to meet quarterly standards. You have to nurture relationships with the stock market. There’s pressure to grow every quarter. It’s a different world.”
Bart Schaneman can be reached at bart@ordaily.outdoorretailer.com.
Read further coverage here:
Arc’teryx Stands Out as Revenue Leader in Amer Sports’ IPO Filing
Salomon Parent Company Details Go-To Market Strategy
China Driving Big Growth for Arc’teryx, Salomon Parent