Amer Sports, Inc. (AS): A Bear Case Theory 

We came across a bearish thesis on Amer Sports, Inc. on TickerTrends Research’s Substack by TickerTrends. In this article, we will summarize the bears’ thesis on AS. Amer Sports, Inc.’s share was trading at $36.74 as of January 14th. AS’s trailing and forward P/E were 66.80 and 30.58 respectively according to Yahoo Finance.

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East and internationally. Amer Sports’ premium outdoor brand Arc’teryx faced an unprecedented crisis in China after sponsoring the Rising Dragon fireworks display in Tibet, which sparked widespread outrage over environmental destruction. The event, viewed nearly 600 million times on Chinese social media, triggered one of the largest spikes in brand conversation in history, reflecting deep consumer anger and accusations of greenwashing.

The backlash escalated due to Arc’teryx and parent Amer Sports’ delayed and inconsistent response, including initial silence, a late apology, and confusion over accountability, compounded by Anta’s absence in public commentary. Chinese authorities subsequently mandated ecological compensation, and Arc’teryx’s Greater China General Manager resigned, signaling institutional acknowledgment of the crisis. China has been a critical growth market for Arc’teryx, contributing significantly to Amer Sports’ premium-outdoor portfolio and global expansion.

The controversy now poses a structural risk, as trust erosion in a core consumer base threatens both brand perception and sales potential. Given the intensity of social-media backlash and the slow nature of reputation recovery in the outdoor category, Arc’teryx’s growth trajectory in China may face sustained headwinds. Unless Amer Sports can convincingly demonstrate environmental accountability and realign the brand with its core nature-first values, the incident could cap growth in one of its most strategically important markets.

For investors, the situation signals a bearish outlook on Arc’teryx’s short- to medium-term performance in China, with reputational damage likely translating into slower sales growth, reduced brand leverage, and potential market share loss among China’s increasingly socially conscious outdoor consumers.

Previously, we covered a bullish thesis on Amer Sports, Inc. (AS) by Stock Analysis Compilation in December 2024, which highlighted the company’s strong performance in China, 18% Q2 growth, and potential upside from its premium brands Arc’teryx and Salomon, suggesting the stock was undervalued. AS’s stock price appreciated by approximately 43.57% since our coverage. TickerTrends shares a contrarian view but emphasizes the structural risk from Arc’teryx’s Rising Dragon controversy in China, which could cap growth and hurt investor sentiment.

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Disclosure: None.