Amer Sports, Inc. (AS): A Bull Case Theory

We came across a bullish thesis on Amer Sports, Inc. on Valueinvestorsclub.com by ThinkAnew. In this article, we will summarize the bulls’ thesis on AS. Amer Sports, Inc.'s share was trading at $37.02 as of December 2nd. AS’s trailing and forward P/E were 67.51 and 31.35 respectively according to Yahoo Finance.

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, Mainland China, Hong Kong, Macau, Taiwan, and the Asia Pacific. AS has transformed from a traditional Finnish sporting goods company into a high-growth, China-focused premium sportswear platform under the management of Anta Sports and other LBO backers. Leveraging its iconic brands—Arc’teryx in Technical Apparel, Salomon in Outdoor Performance, and Wilson in Ball & Racquet Sports—Amer has executed a successful direct-to-consumer (DTC) strategy, rapidly expanding retail presence in China and APAC.

Technical Apparel, led by Arc’teryx, has been the standout performer, growing from $685 million in 2020 to $2 billion in 2024, driven by premium pricing, online marketing, and store expansion near luxury retail locations. Salomon has followed a similar trajectory, scaling from 124 to 254 stores, while Wilson is beginning its DTC transformation with new apparel and footwear lines, creating higher-margin revenue opportunities beyond its traditional low-margin equipment business.

Greater China now accounts for nearly 30% of revenue, contributing disproportionately to growth, aided by rising consumer wealth, winter sports popularity post-2022 Olympics, and cultural and political factors that elevate brand desirability. Anta’s 42% ownership and government backing provide strategic advantages in real estate, manufacturing, and distribution, while other LBO investors like Chip Wilson and FountainVest maintain significant stakes, creating alignment and scarcity in public shares.

Financially, Amer Sports has scaled revenue to $5.7 billion TTM ending 2025 Q2, with adjusted EBIT of $717 million and gross margins benefiting from premium soft goods. While competition is intense and execution risks remain, the company’s multi-brand platform, rapid DTC growth, and Chinese market positioning present a compelling medium- to long-term growth story. Potential catalysts include continued China-led growth, Wilson’s DTC expansion, and upcoming investor events that may clarify strategic priorities and long-term guidance.

Previously we covered a bullish thesis on Amer Sports, Inc. (AS) by Stock Analysis Compilation in December 2024, which highlighted the company’s strong brand presence, rapid growth in Greater China, and upside from its expanding footprint. The company's stock price has appreciated approximately by 44.66% since our coverage. This is because the thesis largely played out. ThinkAnew shares a similar perspective but emphasizes AS’s multi-brand DTC strategy and long-term growth potential.

Amer Sports, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 61 hedge fund portfolios held AS at the end of the second quarter which was 52 in the previous quarter. While we acknowledge the potential of AS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.