Core Viewpoint - The outdoor brand Arc'teryx faced significant backlash after sponsoring an art project involving fireworks in the Himalayas, leading to a public apology and a substantial drop in its parent company's stock price, resulting in a market value loss of 15 billion yuan [1][19]. Company Overview - Arc'teryx is a high-end outdoor apparel brand based in Canada, with its parent company Amer Sports Corporation headquartered in Helsinki, Finland. Amer Sports successfully went public in the U.S. in 2024, with a market capitalization exceeding $20 billion [3]. - The brand has gained immense popularity in China, with discussions about Arc'teryx on social media platform Xiaohongshu reaching 1.54 billion views [3]. Product Pricing and Quality Issues - Arc'teryx products are positioned in the mid-to-high price range, with jackets priced between 4,500 yuan and 20,000 yuan. A limited edition jacket for the Year of the Dragon was priced at 8,200 yuan and resold for up to 12,000 yuan on second-hand platforms [4]. - There have been ongoing quality concerns, with reports of defects in products purchased at high prices, leading to consumer dissatisfaction and the perception that "high price does not equal high quality" [4]. Financial Performance and Marketing Expenses - Amer Sports reported a 23% year-on-year increase in sales, general, and administrative expenses, rising from $568 million to $698 million. Product sales expenses also grew by 16.02%, from $443 million to $514 million [8]. - In 2024, Amer Sports achieved a revenue of $5.183 billion, a year-on-year increase of 18%, with operating profit rising by 56% to $471 million. The fourth quarter saw a 29% increase in revenue from Arc'teryx, contributing to a 33% growth in the outdoor functional apparel segment [14]. Leadership Changes - The recent controversy occurred against the backdrop of leadership changes at Amer Sports, with Jeffery Ma appointed as the new president for Greater China, effective July 1, 2025. He replaces Yao Jian, who previously led significant growth for Arc'teryx in the region [9][12]. - Ma brings extensive experience from previous roles in the sports industry, including CEO of Zhongqiao Sports and executive positions at Tmall and Adidas [11]. Market Trends and Challenges - Despite past growth, Arc'teryx's revenue growth is showing signs of slowing down, with the technical apparel segment experiencing a decline in revenue growth for three consecutive years. The adjusted operating profit margin decreased by 10 basis points to 13.9% in Q2 2025 [18]. - The company is exploring new avenues for growth, particularly in footwear, which is expected to become a significant driver for sustainable profitability [19].