Amer Sports First-Quarter Revenue Beats Expectations on Strong China Sales

Amer Sports Inc., a Finnish sports-equipment manufacturer owned by a Chinese consortium, reported a significant increase in first-quarter revenue, exceeding market expectations due to robust demand in China [para. 1]. The company's revenue for the quarter amounted to $1.18 billion, representing a 13% increase from the previous year and surpassing the $1.13 billion forecasted by Yahoo Finance analysts [para. 2].

Among its various markets, Greater China was the fastest-growing region for Amer Sports, with first-quarter revenue climbing 51% year-on-year to $310 million. This was followed by the rest of the Asia-Pacific region, which saw a 34% increase in revenue to $104 million [para. 3]. CEO James Zheng highlighted the contrasting trend between luxury and sports sectors in China, noting a decline in luxury goods and cosmetics but significant growth in the sports industry. He emphasized that health-conscious consumers are increasingly viewing health as a vital aspect of their lives, benefiting brands like Arc’teryx and Salomon within the premium segment of the market [para. 4].

China’s luxury market has seen varied strategies amid an uneven economic recovery since 2022. Top brands have been focusing on China's largest cities and their very important clients (VICs), who contribute substantially to their sales and are generally more resilient to economic downturns [para. 5]. In contrast, accessible luxury brands like Michael Kors are targeting beyond the top-tier cities and leveraging online tools such as livestreaming and e-commerce for growth, though they were significantly impacted during the pandemic due to their dependency on middle-class spending [para. 6].

Amer Sports was acquired in 2019 by a consortium led by Anta Sports Products Ltd., a Chinese sportswear giant, for over $5 billion. The group includes major stakeholders like Tencent Holdings Ltd., private equity firm FountainVest Partners Co. Ltd., and an investment firm owned by Lululemon’s founder, Chip Wilson. As the leading shareholder, Anta held a 46% stake in Amer Sports as of February [para. 7].

Despite solid growth in Asia-Pacific, Amer Sports’ performance outside this region has been lackluster. In the Americas, the company’s largest market, first-quarter revenue remained flat at $410 million compared to the previous year. Revenue from Europe, the Middle East, and Africa saw a minimal increase of 1%, reaching $359 million [para. 8].

For inquiries, contact Wang Xintong at [xintongwang@caixin.com] and Kelsey Cheng at [kelseycheng@caixin.com] [para. 9].