Core Viewpoint - The outdoor brand Arc'teryx, owned by Amer Sports Corporation, faced significant backlash and a stock price drop due to a controversial fireworks event in the Himalayas, resulting in a market value loss of 15 billion yuan [2][20]. Company Overview - Arc'teryx is a high-end outdoor apparel brand based in Canada, with its parent company Amer Sports headquartered in Helsinki, Finland. Amer Sports is set to go public in the U.S. in 2024, with a market capitalization exceeding 20 billion USD as of the last trading day [3]. - The brand has gained immense popularity in China, with discussions around "Arc'teryx" reaching 1.54 billion views on social media platforms like Xiaohongshu [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 sold for 8,200 yuan, with resale prices reaching up to 12,000 yuan [3]. - Despite the high prices, there have been numerous quality complaints from consumers, leading to a perception that high price does not equate to high quality [3]. Financial Performance - Amer Sports reported a revenue of 5.183 billion USD in 2024, marking an 18% year-on-year increase, with operating profit rising 56% to 471 million USD. The fourth quarter saw a 29% revenue growth for Arc'teryx, contributing to a 33% increase in the outdoor apparel segment [15]. - In the first half of 2025, Amer Sports' revenue grew by 23% to 2.709 billion USD, with adjusted net profit increasing by 146% to 184 million USD [16]. Market Dynamics - The Greater China region has shown significant growth, with revenues increasing by over 40% in both 2024 and the first half of 2025, largely driven by Arc'teryx's performance [17]. - However, there are signs of slowing growth in Arc'teryx's revenue, with the technical apparel segment experiencing a decline in revenue growth for three consecutive years [17]. Management Changes - Recent leadership changes at Amer Sports include the appointment of Jeffery Ma as the new president for Greater China, effective July 1, 2025. He replaces Yao Jian, who previously led the brand to significant growth in the region [11][14]. - The company has acknowledged the contributions of Yao Jian in establishing Amer Sports as a leading sports goods company in Greater China [13]. Stock Market Reaction - Following the controversy, Amer Sports' stock price dropped over 11% in pre-market trading, with a market capitalization loss of approximately 2.15 billion USD (around 15.3 billion yuan) [20].

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].