Ammeri Sports: Who Invests?

Amer Sports is a Finnish sporting goods company with a global presence, employing over 9,700 people. The company has a diverse portfolio of internationally recognised brands, including Wilson, Salomon, and Arc'teryx. With ambitious growth plans, a recent IPO, and a strategic expansion into the Chinese market, Amer Sports presents an attractive investment opportunity for those looking to capitalise on the growing sports industry. While the exact number of investors is not publicly available, the company's strong performance and expansion plans make it a compelling prospect for those looking to diversify their portfolios.

Amer Sports' international expansion

Amer Sports 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 time, Amer Sports gradually evolved into a multinational firm devoted to the production and marketing of sporting goods. The company currently employs over 9,700 people and has offices in various countries, including Finland, Poland, Germany, China, and the US, with manufacturing and sales locations worldwide.

In recent years, Amer Sports has intensified its international expansion efforts, particularly in the Chinese market. In 2019, Amer Sports was acquired by a consortium consisting of ANTA Sports, FountainVest Partners, Anamered Investments, and Tencent. This acquisition was a strategic move by ANTA Sports to gain a foothold in the international market and propel its brand globally. As a result, Amer Sports became a separate business entity, leveraging the resources and expertise of Anta Sports for expansion in China.

The Chinese market has become the most important source of growth for Amer Sports. Following the acquisition, Amer Sports brands, particularly Arc'teryx and Salomon, gained significant traction in the domestic high-end outdoor market in China. As of September 30, 2023, Amer Sports operated 63 Arc'teryx company-owned retail stores in Greater China, along with 30 Salomon company-owned retail stores and 67 distribution stores. This expansion has contributed to a substantial increase in revenue from the Greater China region, with a compound annual growth rate of 60.9% from 2020 to 2022.

In addition to its expansion in China, Amer Sports has also established a global presence through its diverse portfolio of companies. Amer Sports owns several prominent sporting goods brands, including Wilson, Arc'teryx, Salomon, Peak Performance, Atomic, Armada, Enve Composites, and more. These brands offer sports equipment, apparel, footwear, and accessories in various categories such as tennis, badminton, golf, American football, and soccer. The company's brands are loved and trusted by millions of athletes, consumers, and fans worldwide, empowering them in their sports and outdoor pursuits.

To further its international expansion, Amer Sports went public again in February 2024 through an initial public offering (IPO) on the New York Stock Exchange (NYSE). The company raised $1.4 billion in its offering and was valued at $6.5 billion. This move not only contributed to Amer Sports' financial growth but also enhanced its global visibility and recognition.

Amer Sports' brand portfolio

Amer Sports is a Finnish multinational sporting equipment company that owns a portfolio of companies, including:

Atomic

Atomic is an Austrian ski manufacturer acquired by Amer Sports in 1994.

Arc'teryx

Arc'teryx is a premium fashion apparel company specialising in outdoor clothing.

Armada

Armada is a ski specialist company.

Enve Composites

Enve Composites is a company that serves the bike industry.

Peak Performance

Peak Performance is a Swedish sportswear manufacturer acquired by Amer Sports in 2018.

Salomon

Salomon is a French company specialising in outdoor sports equipment and clothing. Salomon athletes won medals at the 2022 Winter Olympics.

Wilson Sporting Goods

Wilson is an American company that manufactures equipment for tennis, baseball, football, and basketball. Wilson footballs were used in the National Football League, and Wilson rackets have been used for several seasons.

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 time, Amer Sports evolved into a company devoted to the production and marketing of sporting goods. The company has over 9,700 employees and owns several well-known brands, including Wilson, Salomon, Atomic, Arc'teryx, and Suunto.

In terms of ownership, Amer Sports has had a dynamic history. In 2018, its largest owners were Keva, the Civil and Water Engineering Fund, Ilmarinen, Mandatum, and Ilkka Brotherus. However, in December 2018, a consortium called Mascot Bidco announced its takeover bid for the company. This consortium included Anta Sports, FountainVest Partners, Anamered Investments, and Tencent. The offer valued Amer Sports shares at 4.6 billion euros, a significant premium over their average market value. As a result, Anta Sports, China's largest sportswear manufacturer, became a major owner of Amer Sports, providing the resources needed for expansion into the Chinese market. Chip Wilson, the founder of Lululemon Athletica, also owns about one-fifth of Amer Sports.

In February 2024, Amer Sports went public again through an initial public offering and was listed on the New York Stock Exchange, raising $1.4 billion and reaching a valuation of $6.5 billion. This move provided an opportunity for a broader range of investors to own a part of Amer Sports.

Amer Sports' revenue growth

Amer Sports, the parent company of Arc'teryx, Wilson Sporting Goods, Salomon, and other sports and outdoor brands, has been experiencing substantial revenue growth over the past few years. The company recorded $3.5 billion in revenue in 2022, marking a 16% increase from 2021. This follows an even more impressive revenue growth rate of 25% in 2021 compared to 2020.

In 2023, Amer Sports' annual revenue reached $4.37 billion, representing a remarkable 23.10% growth rate. This positive trend is expected to continue, with the company estimating total revenues for the full year 2023 to increase by 22.7% to 23.0%, resulting in projected revenue of between $4.35 billion and $4.36 billion.

The revenue growth has been attributed to several factors, including strong performance across all operating segments, geographic regions, and channels. Notably, the Technical Apparel segment, driven by the Arc'teryx brand, has contributed significantly to this growth through new store openings, comparable store sales growth, e-commerce expansion, and a rebound in the Greater China region following the COVID-19 lockdowns in 2022.

Additionally, the Outdoor Performance segment, dominated by Salomon and the company's snow sports brands, has also experienced healthy growth, driven by footwear sales, brand performance in Greater China, and the normalisation of product supply after the pandemic. The Ball & Racquet Sports segment, led by Wilson Sports, DeMarini Sports, and Louisville Slugger, has seen more moderate revenue increases, with growth in basketball and sportswear offsetting softer sales in baseball and team sports.

Amer Sports' growth strategy includes a focus on direct-to-consumer (DTC) channels, with DTC accounting for an increasing proportion of the company's revenue. The company intends to continue expanding its store rollouts and enhancing its digital presence to drive further revenue growth.

The success of Amer Sports' IPO on the New York Stock Exchange in February 2024, raising about $1.37 billion, has also contributed to the company's ability to invest in its growth strategy and elevate its position in the market.

Amer Sports' stock market listings

Amer Sports Inc. (AS) is listed and trades on the New York Stock Exchange (NYSE). Its stock price is currently $12.42, which is the lowest it has been in the last year. The stock price forecast for the next 12 months is $18.85, which would be an increase of 50.44% from the latest price.

The company's stock ticker symbol is AS, and it is common to refer to the stock as $AS on social media and forums. The dollar sign is a shorthand convention to indicate that it is a stock ticker symbol.

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories, including climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, American football, basketball, golf, and various other professional and recreational sports. This segment also provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse.

Amer Sports sells its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites and third-party online retailers. The company was founded in 1950 and is based in Helsinki, Finland.

Frequently asked questions