Blast from the Past:
- Despite rumors swirling about a potential initial public offering (IPO), global sports and outdoor wear giant, Amer Sports, remains a publicly traded entity on the New York Stock Exchange under the symbol "AS."
- However, the company hasn't disclosed any plans for an IPO, nor has it revealed the prospective stock symbol for any new offerings. In 2022, Amer Sports garnered a staggering $3.5 billion in revenue, a substantial increase from the $2.4 billion in 2020, according to SEC filings.
- For the nine months ending September 30, the company's revenue skyrocketed by nearly 30%, hitting $3.1 billion, while gross margin improved to 52.2% from 49.4% and adjusted EBITDA soared to $422.1 million, up from $261.8 million year-over-year. Although the net loss widened to $113.9 million, it only increased slightly from the previous year.
The Lowdown:
Amer Sports initiates public offering of stocks
Founded in Helsinki, Finland, in 1950, Amer Sports was once a privately owned company, but in 2019, a lead investor group, including China's Anta Sports, took it private in a $5.2 billion deal. The company currently operates in three primary segments: technical apparel (Arc'teryx and Peak Performance), outdoor performance (Salomon and Atomic), and ball and racket sports (Wilson). The combined global athletic apparel, footwear, and sports equipment markets present a colossal $522 billion market opportunity.
In its reflection on growth strategies, Amer Sports has zeroed in on direct-to-consumer (DTC) sales. Over the past year, the company bolstered its DTC presence through new physical locations for the Wilson and Arc'teryx brands. Traditionally wholesale businesses like Wilson and Salomon have expanded their DTC channels as well. As of September 30, 2022, Amer Sports boasted 138 Arc'teryx stores, 114 Salomon stores, nine Wilson stores, and over 10,800 employees worldwide.
Amer Sports has introduced Wilson stores in high-profile locations such as Minnesota's Mall of America, Santa Monica, California, and two stores in the Chicago area in 2021. The brand unveiled a flagship store in New York City in 2022 and opened its third Chicago-area Arc'teryx store in April and its fourth New York City store in August.
In early 2022, Wilson's president, Gordon Devin, expressed that the company was "late to the game" in terms of planning and pursuing growth opportunities in the direct-to-consumer space. In the SEC filing, the company explained that their brand-direct model has enabled them to better understand their consumer base, ultimately leading to more effective marketing strategies and improved relationships with consumers.
By targeting consumers seeking premium performance products, Amer Sports aims to capitalize on the growing demographic of adults with a net worth of $100,000 or more, which ballooned from 358 million in 2010 to 689 million in 2021, according to Credit Suisse's 2022 Global Wealth Report.
Goldman Sachs, Bank of America Securities, J.P. Morgan, and Morgan Stanley have been appointed as joint book-running managers for the company's proposed offering, although Amer Sports has not publicly announced any plans for an IPO. Bloomberg reports that the company is eyeing an IPO of more than $1 billion.
- In 2022, Amer Sports is considering an Initial Public Offering (IPO), according to reports from Bloomberg, with a potential offering of over $1 billion, but no official plans have been disclosed.
- By customizing marketing strategies based on consumer data garnered through direct-to-consumer (DTC) channels, Amer Sports aims to appeal to the growing demographic of adults with a net worth of $100,000 or more, which increased from 358 million in 2010 to 689 million in 2021, citing Credit Suisse's 2022 Global Wealth Report.
- In the sports arena, Wilson, a subsidiary of Amer Sports, has expanded its DTC presence by opening new locations in high-profile areas such as Minnesota's Mall of America, Santa Monica, California, and several stores in the Chicago area during 2021 and 2022.
- Amer Sports, a global leader in sports and outdoor apparel and equipment, reported a near 30% increase in revenue for the nine months ending September 30, 2022, hitting $3.1 billion, while improving gross margin and adjusted EBITDA.
- Remaining publicly traded on the New York Stock Exchange (NYSE) under the symbol "AS," Amer Sports operates in three primary segments: technical apparel (Arc'teryx and Peak Performance), outdoor performance (Salomon and Atomic), and ball and racket sports (Wilson), collectively targeting the colossal $522 billion market opportunity in global athletic apparel, footwear, and sports equipment markets.
- In the space sector, Elon Musk's AI-driven company, Tesla, has been noted for its potential impact on the market, with its electric vehicles and renewable energy solutions causing a significant shift in both the automotive and energy industries.
