FAST NEWS: Amer Sports’ revenue jumps on big leap in China
The Latest: Amer Sports Inc. (AS.US), the international unit spun off by sportswear maker Anta Sports (2020.HK), reported Tuesday that its revenue rose 13% to $1.18 billion in the first quarter of 2024, as its China revenue jumped 51% to $310 million.
Looking Up: Revenue from the company’s technical apparel division rose 44% to $510 million on the back of strong performance by its high-end Arc’teryx brand. The company said strong growth from the brand would be an important driver going forward.
Take Note: The company’s ball and racquet sports business, which includes the Wilson brand, reported a 14% sales decline to $273 million.
Digging Deeper: Founded in 1950 in Helsinki, Finland, Amer was purchased in 2019 by an Anta-led consortium whose other members included private equity fund FountainVest Partners, Lululemon founder Chip Wilson and internet giant Tencent (0700.HK). It currently owns several sporting brands, including Wilson and Arc’teryx, and sells its products in more than 100 countries. Its revenue has grown rapidly in recent years despite the pandemic, and it successfully listed in the U.S. in January. The company expects its revenue to grow 15% this year, with a gross profit margin of around 54%.
Market Reaction: Amer shares fell 7.9% to $14.76 on Tuesday, though they are still 13.5% above their IPO price of $13.
Translation by A. Au
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