Is AS a good stock to buy? We came across a bullish thesis on Amer Sports, Inc. on Matt McClintock Retail/Consumer Research – M Squared Capital’s Substack by Matthew McClintock. In this article, we will summarize the bulls’ thesis on AS. Amer Sports, Inc.’s share was trading at $36.15 as of April 21st. AS’s trailing and forward P/E were 48.30 and 28.57 respectively according to Yahoo Finance.
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Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe and is experiencing broad-based momentum across its Arc’teryx and Salomon brands, with women’s and footwear categories growing roughly 40% or more, while Veilance delivers strong double-digit gains supported by approximately 30% expansion in Arc’teryx store count. Management highlights underlying comp sales dynamics are harder to isolate due to store openings, though post-opening productivity remains the key driver of sustainable growth.
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Salomon continues to perform strongly in EMEA, posting double-digit omnichannel comps in Paris and London, alongside meaningful brand awareness gains of 15 points in Paris and 10 points in London since 2023, reinforcing the quality of international expansion. North America is accelerating, with strong order books from key retailers including REI, Nordstrom, JD Sports, and specialty channels, signaling early-stage but improving penetration.
Inventory levels remain elevated for similar reasons as prior quarters but are expected to normalize in 2H26, reducing concerns around working capital. While the initial 2026 EBIT margin guidance sits at the low end of the long-term algorithm due to continued Salomon investment, management emphasizes a deliberate trade-off toward long-term profitable growth over near-term margin flow-through, reflecting multiple high-return reinvestment opportunities across brands.
Arc’teryx maintains a 18% to 20% revenue growth framework consistent with prior expectations, with no structural change to its algorithm and sustained momentum in North America. Wholesale expansion is becoming increasingly important across footwear, Veilance, and women’s categories, including a strengthened strategy in Portland. Overall, Amer Sports positioned a multi-brand growth platform with expanding channels, rising brand equity, and optionality from continued international scaling.
Previously, we covered bullish thesis on Amer Sports, AS by Stock Analysis Compilation in December 2024, which highlighted strong China-driven growth, earnings outperformance, and undervaluation versus peers. AS’s stock price has appreciated by 41.26% since our coverage. Matthew McClintock shares similar view but emphasizes broad-based brand momentum across Arc’teryx and Salomon, wholesale expansion, and long-term reinvestment-led margin strategy.
Amer Sports, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held AS at the end of the fourth quarter which was 63 in the previous quarter. While we acknowledge the risk and potential of AS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
