Research

Far From The Arc Of This Story - 9/14/25

We kicked the tires on Amer Sports (Arc’teryx, Salomon, Wilson) to see if we were missing anything ahead of what almost certainly will be a positive event at this week’s investor day (well telegraphed). We expect investors to gain greater confidence in the TAM expansion opportunities that should support a highly attractive long term growth profile for the brand. The numbers we are seeing today already indicate that early brand extension efforts have ample consumer permission to continue.

However, there are some reasons for concern. Chip Wilson recently selling $160 million in stock is a bit of a red flag, but to be fair it was only ~5% of his holdings (he also sold a modest amount of Lululemon but ownership percentage increased). The timing certainly is interesting right before the investor day. The aggressive store expansion at Salomon is still supported by solid comp store sales but somewhat unprecedented relative to other brands in history. Wilson’s Tennis 360 strategy coincides with practically every brand in the world making the tennis category a major priority.