UBS Analyst: Arc’teryx, Salomon Brands Continue to Win

Core Viewpoint - Amer Sports Inc., the parent company of Arc'teryx and Salomon, is experiencing strong sales and earnings momentum, which is expected to positively surprise the market and drive stock outperformance [1][2]. Financial Performance - Amer Sports reported a net income of $18.2 million for Q2, reversing a net loss of $3.7 million from the previous year, with revenue increasing by 23.5% to $1.24 billion from $1.00 billion [4]. - The company is projected to beat expectations for both sales and earnings per share in Q3, supported by strong trends in the footwear category, particularly for Salomon sneakers [2][4]. Market Trends - UBS's analysis indicates broad-based sequential improvement in searches for Arc'teryx and Salomon in both U.S. and international markets during Q3 2025, compared to two years prior [3]. - The Wilson brand is also showing increased momentum in gross merchandise value (GMV) trends in China [3]. Brand Growth Potential - Salomon is identified as the fastest-growing outdoor sneaker brand in China, while Arc'teryx has become the leading outdoor brand in the Chinese market since 2024 [4]. - Arc'teryx aims to achieve $5 billion in top-line sales by 2030, indicating significant growth potential [4]. Strategic Initiatives - Arc'teryx is collaborating with NuOrder to enhance its wholesale business operations, focusing on digitization to improve efficiency and customer experience [5].