Amer Sports: Who Invests?

Amer Sports, Inc. is a Finnish multinational sporting equipment company that has been publicly traded on the New York Stock Exchange since February 2024. The company raised $1.4 billion in its initial public offering and was valued at $6.5 billion. Amer Sports has a diverse portfolio of companies, including well-known brands such as Wilson, Arc'teryx, Salomon, and Atomic. With a long history dating back to 1950, Amer Sports has evolved from its early beginnings in tobacco manufacturing to become a prominent player in the global sporting goods industry. The company currently employs almost 11,000 people and sells its products in over 100 countries worldwide. While the exact number of investors is not publicly available, the strong brand portfolio, global presence, and financial performance of Amer Sports make it an attractive investment opportunity for those interested in the sporting goods industry.

Amer Sports' IPO of 2024

Amer Sports, a Finnish multinational sporting equipment company, went public through an initial public offering (IPO) in February 2024. The company, which owns prominent brands such as Arc'teryx, Salomon, and Wilson, has a rich history spanning over 70 years.

The IPO:

On its IPO day, Amer Sports' stock price rose 3%, closing at $13.40 per share. The company raised $1.37 billion by offering 105 million shares, although this was a discounted price compared to the initially planned $16 to $18 per share. The IPO valued Amer Sports at approximately $6.3-$6.5 billion, lower than the expected valuation of around $8.7 billion.

The company's market capitalization on its debut was roughly $6.49 billion, based on the closing share price and the number of outstanding shares.

Amer Sports' Brands and Business:

Amer Sports owns a diverse portfolio of brands, including:

• Wilson: A leading manufacturer of equipment and apparel for sports such as tennis, basketball, and baseball.
• Arc'teryx: Known for its luxury outdoor apparel, particularly high-end jackets.
• Salomon: Synonymous with high-quality footwear, from running shoes to fashionable sneakers.
• Peak Performance: One of Scandinavia's largest functional sports clothing brands, born out of a love for skiing.
• Atomic: A top-class winter sports equipment manufacturer, producing boots, bindings, helmets, and more.
• Armada: An athlete-focused ski brand, utilising modern technology for superior performance.
• ENVE Composites: A prominent brand in the bike industry, known for its carbon fibre components.
• ATEC: The official training equipment supplier of Major League Baseball (MLB).
• DeMarini: Manufacturer of high-performance baseball, fastpitch, and slowpitch bats, along with related accessories.
• EvoShield: Offers patented custom-moulding protective gear for various sports, including baseball, football, and hockey.
• Louisville Slugger: The official bat of MLB, producing nearly two million bats annually and used by 80% of hitters in the US baseball hall of fame.

Amer Sports has operations in 41 countries and sells its products in over 100 countries. The company's revenue has been dynamic, growing from $2.4 billion in 2020 to $3.5 billion in 2022. However, it has faced challenges with profitability, posting losses in recent years.

Investor Concerns:

Despite Amer Sports' strong brand portfolio, investors expressed concerns about the company's reliance on China for its revenue. Additionally, there were worries about the performance of its Salomon and Wilson brands compared to Arc'teryx, as well as the company's overall debt and lack of profitability.

Amer Sports' brand portfolio

Amer Sports, a Finnish multinational sporting equipment company, owns a portfolio of prominent sporting goods brands. The company has evolved from its industrial past, involving tobacco trading, shipping, and publishing, into a multinational firm focused on the production and marketing of sporting goods. Amer Sports' brand portfolio includes:

Wilson

Wilson is a leading manufacturer of equipment and apparel for sports such as tennis, basketball, and baseball. It is an iconic American brand that has been used by top athletes and holds partnerships with major sports leagues. Wilson distributes its products through 15,000 retailers and has outlets in New York City and Chicago.

Arc'teryx

Arc'teryx is known for its premium outdoor fashion apparel, including jackets and luxury outdoor clothing. The brand is popular among serious outdoor enthusiasts and is carried by retailers such as REI, Ski Barn, and Nordstrom. Arc'teryx has a strong presence in China, contributing 43% of its $942 million revenue in the first three quarters of 2023.

Salomon

Salomon is synonymous with high-quality footwear, ranging from running and walking shoes to fashionable sneakers. The brand also offers other functional apparel and outdoor performance equipment. Salomon athletes won several medals at the 2022 Winter Olympics. The brand has a strong presence in the EMEA region, contributing 58% of its $949 million revenue in the first three quarters of 2023.

Peak Performance

Peak Performance is one of Scandinavia's largest clothing brands in functional sports, born in the Swedish mountains out of a love for skiing. The brand is part of the Technical Apparel bucket, generating $1 billion in revenue in 2022, a 15% increase over 2021.

Atomic

Atomic manufactures and sells top-class winter sports equipment, including boots, bindings, helmets, poles, goggles, and skis. Mikaela Shiffrin, a renowned skier, uses Atomic skis. The brand is part of the Outdoor Performance bucket, generating $1.4 billion in revenue in 2022, a 15% increase over 2021.

Armada

Armada is an athlete-focused ski brand, featuring technologically superior products designed for modern skiing.

Enve Composites

Enve Composites is a prominent aftermarket brand in the bike industry, known for its carbon fiber components.

Other Brands

In addition to the brands mentioned above, Amer Sports' portfolio also includes ATEC, DeMarini, EvoShield, and Louisville Slugger. These brands cover a range of sports, including baseball, softball, and racquet sports.

Amer Sports' revenue growth

Amer Sports, a Finnish multinational sporting equipment company, has experienced significant revenue growth over the years, solidifying its position as a leader in the sporting goods industry. With a diverse portfolio of brands and a global presence, Amer Sports has demonstrated a consistent track record of financial performance and strategic expansion.

In 2022, Amer Sports reported annual revenue of $3.5 billion, marking a notable 16% growth from the previous year. This growth builds upon an even stronger performance in 2021, where the company achieved a remarkable 25% revenue increase compared to 2020. The company's direct-to-consumer (DTC) strategy has been instrumental in driving this growth, with DTC accounting for 29.5% of revenue in 2022, a significant increase from 21.7% in 2020.

The performance of Amer Sports' brands has been a key contributor to its revenue growth. The company's brand portfolio includes prominent names such as Wilson, Arc'teryx, Salomon, Peak Performance, and Atomic. These brands have cultivated a strong reputation in their respective markets, catering to a wide range of sports enthusiasts and professionals. Arc'teryx, in particular, has been a standout performer, with its DTC sales outpacing competitors like Patagonia, Nike, and The North Face.

Geographic expansion has also played a pivotal role in Amer Sports' revenue growth. The company has increased its global footprint, with a presence in over 40 countries and products sold in more than 100 countries. North America and China are the primary revenue drivers, contributing a combined 80% of Arc'teryx's brand revenue. However, the company is also actively pursuing growth in other regions, including Europe, Asia, and Australia.

In February 2024, Amer Sports went public on the New York Stock Exchange (NYSE), raising approximately $1.37 billion from its initial public offering (IPO). The IPO valued the company at over $6 billion, slightly lower than the initially expected valuation of around $10 billion. Despite the lower share price, Amer Sports' leadership expressed satisfaction with the outcome, emphasizing their focus on long-term growth and the benefits of improved access to capital.

Looking ahead, Amer Sports is well-positioned to continue its trajectory of revenue growth. The company's strong brand portfolio, global expansion strategy, and commitment to direct-to-consumer channels are expected to drive sustained success. With a rich history spanning over 70 years and a diverse range of sports and outdoor brands, Amer Sports remains a prominent player in the sporting goods industry.

Amer Sports' history

Amer Sports, Inc. is a Finnish multinational sporting equipment company based in Helsinki, Finland. It was established in 1950 by four student organisations as a tobacco manufacturer and distributor called Amer-Tupakka. In 1961, Amer acquired the right to produce and sell Philip Morris cigarettes in Finland, and the significant profits from the company's tobacco interests were invested in three commercial ships.

In 1970, Amer expanded into the publishing and printing industry through the acquisition of Weilin+Göös, a division that remained part of Amer for over 25 years. In 1974, Amer entered the sports equipment market with the acquisition of Koho-Tuote, a Finnish ice hockey gear maker. In 1977, the company went public on the Helsinki Stock Exchange, and in 1984, it was listed on the London Stock Exchange.

In the 1980s, Amer began to focus on the sporting goods industry, acquiring McGregor Golf Company in 1986 and Wilson in 1989. The company continued to acquire sports equipment companies throughout the 1990s and 2000s, including Atomic in 1994, Suunto in 1999, and DeMarini in 2000. During this time, Amer also began to divest its non-core businesses, selling its tobacco business back to Philip Morris in 2004 and changing its name to Amer Sports.

In 2005, Amer acquired the outdoor sports company Salomon from Adidas and welcomed new brands like Arc'teryx and Mavic. The company continued to grow internationally, acquiring Louisville Slugger in 2015, ENVE Composites in 2016, Armada in 2017, and Peak Performance in 2018. In 2019, Amer Sports was bought by a consortium of investors, including ANTA Sports, FountainVest Partners, Anamered Investments, and Tencent. The company went public again in February 2024, listing on the New York Stock Exchange with a valuation of $6.5 billion.

Amer Sports' ownership

Amer Sports, Inc. is a Finnish multinational sporting equipment company based in Helsinki, Finland. It was established in 1950 as an industrial conglomerate with interests in tobacco trading, ship owning, and publishing. Over the years, Amer Sports gradually evolved into a multinational firm devoted to the production and marketing of sporting goods.

The company has a global community of 11,400 people and operates in 41 countries, with revenue totalling $4.37 billion in 2023. Amer Sports, Inc. shares are publicly traded on the New York Stock Exchange (NYSE) under the ticker symbol 'AS'. The company's stock price and financial performance are regularly monitored and analysed by investment banks and financial institutions.

In terms of ownership, Amer Sports is owned by a consortium of companies, including ANTA Sports, FountainVest Partners, Anamered Investments, and Tencent. ANTA Sports, a Chinese retail conglomerate and China's largest sportswear manufacturer, plays a significant role in the consortium. Chip Wilson, the founder of Lululemon Athletica, also owns about one-fifth of Amer Sports.

Amer Sports itself owns a portfolio of companies and iconic brands, such as Atomic, Arc'teryx, Armada, Enve Composites, Peak Performance, Salomon, and Wilson Sporting Goods, among others. These brands operate across various segments, including technical apparel, outdoor performance, and ball and racquet sports.

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