UBS analyst Jay Sole says Arc’teryx and Salomon parent Amer Sports Inc. is on a roll.
“We expect strong sales and earnings momentum over the near term to positively surprise the market and drive stock outperformance,” Sole said in a recent research note.
Shares of Amer Sports on Tuesday ended the trading session up 0.1 percent to close at $30.18. Sole has a “Buy” rating on the company’s shares and a $52 price target. UBS’ data analysis plus industry data point to strong topline trends. He’s expecting a third quarter beat on both sales and earnings per share.
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The research firm’s Evidence Lab’s Google analysis indicates “broad-based sequential improvement in Arc’teryx and Salomon’s searches across the U.S. and international markets during the third quarter of 2025, on two-year basis.” In addition, the UBS Evidence Lab’s China Online Market Monitor underscored increased momentum in the Wilson brand’s third quarter GMV (gross merchandise value; a measure of the total value sold through an e-commerce platform over a specified period of time) trends.
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Net income for the second quarter ended June 30 for Amer Sports swung back to the black at $18.2 million, or 3 cents a diluted share, from a year-ago net loss of $3.7 million, or 1 cent. Revenue rose 23.5 percent to $1.24 billion from $1.00 billion. Wall Street in general has been bullish on the company’s growth prospects due to growing momentum for Salomon sneakers and with footwear as the fastest growing category at its Arc’teryx brand. And in a telephone interview with Amer Sports CFO Andrew Page after the second quarter earnings report, he described the runway ahead for the company’s Arc’teryx, Salomon and Wilson Tennis 360 brands as “still pretty immense.”
When the company its Investor Day meeting last month, Amer CEO Jie Zheng said Salomon is “becoming the fastest-growing outdoor sneaker brand in China right now” and that “Arc’teryx has become the No. 1 outdoor brand in China markets since 2024.” During the same meeting, Arc’teryx brand CEO Stuart C. Haselden told investors that there’s potential for the brand to reach a target of “$5 billion [in five years] in top-line sales by 2030.”
Separately, the Arc’teryx brand has been working with NuOrder to drive its wholesale business.
NuOrder said in a case study that the Canadian high-performance outdoor apparel and equipment brand, a client for eight years, understood the power of digitizing their wholesale operations and had a goal to “become the easiest brand to work with” when the outlined their needs from the NuOrder platform.
That transparency enabled the brand to achieve a few “quick wins,” such as streamlined availability visibility on intro dates and inventory, as well as a streamlined ordering workflow for buyers. The platform settings also allowed for more dealers to access certain portals within specific action restrictions.
The NuOrder report said that the new platform structure enabled the brand to garner 31 percent more wholesale revenue from 2023 to 2024. The order workflow made it easier for buyers to both find products and complete their orders.
In addition, Arc’teryx’s Outdoor NuOrder portals saw a 3 percent growth in dealer-submitted orders, or 52 percent in 2024 from 49 percent in 2023. The increases helped the Canadian brand achieve 38 percent-plus growth last year, which led to Arc’teryx surpassing $2 billion in sales across all channels. Overall, the brand’s wholesale revenue tripled over the past five years in North America, the NuOrder report noted.
In January, Arc’teryx named 17-year Nike veteran Matt Bolte as chief merchandising officer. And for its Veilance brand, Marissa Pardini was named general manager while Ben Stubbington was named creative director.