Arc’teryx continued to drive double-digit revenue growth at Amer Sports in the third quarter, particularly in China, and Salomon will have a new CEO in the new year.

Amer’s revenue grew 17% to $1.354 billion in the third quarter year-over-year. By segment, Amer Sports reported that:

• • Technical apparel, which includes Arc’teryx and Peak Performance, increased 34% to $520 million, or 33% on a constant currency basis.
  • Outdoor performance, which includes Salomon, Atomic, and Armada, increased 8% to $534 million, or 7% on a constant currency basis.
  • Ball and racquet sports, which includes Wilson, ATEC, DeMarini, Evoshield, and Louisville Slugger, increased to $300 million, which represents 11% growth on both a reported and constant currency basis.

Amer’s net income increased 257% to $56 million, or $0.11 diluted earnings per share.

Revenue growth was concentrated in Greater China and APAC, where revenue grew by 56% and 47%, respectively. In the Americas and EMEA, revenue increased by 7% and 4% respectively after two quarters of flat results.

“While other consumer companies face challenges in Greater China, in Q3 we generated 56% growth there and we continue to well outperform the market,” said CEO James Zheng on the company’s earnings call on Tuesday.

Chief Product Officer Guillaume Meyzenq will be promoted to president and CEO of Salomon effective Jan. 1, 2025. Michael Hauge Sørensen, who became the COO of Amer Sports in 2020, will return to his role as advisor to the board of directors.

Arc’teryx Footwear Performs Well in Q3

Footwear, hard shell jackets, and women’s products sold well at Arc’teryx in the third quarter, and the brand opened a net nine new stores, bringing the total number of owned stores to 134. Its new New York flagship opened in September. It features a large Rebird gear repair and used gear sales center and presents products by activity rather than category, which creates a more engaging presentation to customers, Zheng said.

“Arc’teryx is a breakout growth story, with standout growth and profitability for the outdoor industry, charting new territory with its disruptive DTC models. The unique competitive position of our growing store network, critical products, and the deep community connections allow us to continually attract new consumers to our brand and also have success expanding into new categories such as footwear,” Zheng said.

Time magazine named Arc’teryx’s MoGo pants, which use robotics to assist hikers and reduce their load, one of the best inventions of 2024.

The brand’s recently launched footwear is performing well, Zheng said.

“Our confidence is growing that footwear will become a very sizable and profitable avenue for Arc’teryx, both in owned retail and certain brand-relevant wholesale accounts,” he said.

Salomon Expands Chinese Retail Footprint

Salomon’s sport style offerings have performed particularly well in Greater China and APAC, Zheng said, where there’s an appetite to try new brands.

“Salomon, a brand born in the mountains, has a unique technical performance position and the design esthetic within the global sneaker market, but still has low market share and the long, long way of growth, especially at this time when consumers are more open to new sneaker choice than ever before,” he said.

Salomon opened 29 net new stores in Greater China, both owned and with partners, in the third quarter, bringing the total to 165 in the region. The brand has also started testing its compact shop format outside of China, in Tokyo, Singapore, and Paris. Salomon opened its first pop-up shop in New York in October and plans to open two stores in the city in 2025.

From an organizational standpoint, Zheng said Salomon has separated the winter sports equipment sales team from the Salomon footwear team, which will help both reach their potential given the markets are so unique.

Incoming CEO Guillaume Meyzenq was selected after an extensive search of both internal and external candidates, Zheng said.

“He has built a strong reputation during his 28 years at Salomon, and is extremely well-respected throughout the company and the industry,” Zheng said. “Born and raised in the French Alps, an avid skier and outdoor man, Guillaume embodies the core values of Salomon.”

Full-Year 2024 and Early 2025 Outlook

Amer Sports raised its guidance for the year ending Dec. 31, 2024, projecting revenue growth of between 16% and 17% for the year.

By segment, Amer Sports expects:

• Technical apparel revenue to grow approximately 34%.
• Outdoor performance revenue to grow by approximately 8%.
• Ball and racquet revenue to grow by approximately 4%.

“As we begin to look beyond this year, we are also confident in our initial 2025 outlook and expect to deliver results consistent with our long-term financial algorithm of low-double-digit to mid-teens annual revenue growth and 30-70+ basis points of annual adjusted operating margin expansion driven by gross margin expansion,” said CFO Andrew Page.

Kate Robertson can be reached at [email protected].