Amer Sports' Direct-to-Consumer Momentum: A High-Growth DTC Play in Premium Sports and Outdoor Brands

Amer Sports has emerged as a standout player in the premium sports and outdoor apparel sector, driven by its aggressive Direct-to-Consumer (DTC) strategy. In Q2 2025, the company reported a 40% year-over-year surge in DTC revenue, totaling $640.9 million, underscoring the scalability of its model. This growth is not just a short-term spike but a reflection of a well-executed, long-term strategy that prioritizes brand equity, operational efficiency, and customer-centric innovation.

DTC Growth: A Scalable Engine for Value Creation

Amer Sports' DTC expansion is anchored in its three core segments: Technical Apparel (Arc'teryx), Outdoor Performance (Salomon), and Ball & Racquet Sports (Wilson). Each segment has demonstrated robust growth, with omni-comp DTC revenue rising 15% (Technical Apparel), 28% (Outdoor Performance), and 19% (Ball & Racquet) in Q2 2025. The Ball & Racquet segment, in particular, has seen a 142% increase in owned retail stores, from 26 in 2024 to 63 in 2025, reflecting a disciplined approach to physical retail expansion.

The scalability of this model is further supported by Amer Sports' digital infrastructure. E-commerce platforms and omnichannel integration have enabled the company to maintain high margins while deepening customer relationships. For instance, Salomon's DTC strategy in China—featuring localized product lines and digital engagement—has driven double-digit sales growth in the region.

Margin Expansion: A Test of Operational Discipline

The company's margin expansion is a critical indicator of DTC sustainability. The Outdoor Performance segment, for example, saw its operating margin jump 720 basis points to 5.1% in Q2 2025, driven by Salomon's footwear momentum. Similarly, the Ball & Racquet segment expanded its margin by 200 basis points to 3.1%, fueled by Wilson's Tennis 360 initiative. These gains highlight Amer Sports' ability to balance volume growth with cost control, a hallmark of a mature DTC strategy.

However, margin sustainability hinges on managing external pressures, such as rising tariffs. While Wilson's segment faces a slightly higher tariff impact, its strong brand positioning and premium pricing power mitigate these risks. The company's focus on high-margin, technical products ensures that DTC growth remains profitable even in a challenging macroeconomic environment.

Brand Strength: The Invisible Engine of DTC Success

Amer Sports' premium brands—Arc'teryx, Salomon, and Wilson—are not just products but cultural touchstones. Arc'teryx's technical expertise and Salomon's innovation in outdoor performance have created loyal customer bases willing to pay a premium. Wilson's Tennis 360 initiative, which integrates equipment, apparel, and digital services, has redefined the tennis market, driving 11% revenue growth in Q2 2025.

Brand equity also provides a buffer against market saturation. By leveraging localized innovation (e.g., Arc'teryx's China-specific footwear line), Amer Sports adapts to regional preferences without diluting its premium identity. This adaptability ensures that DTC expansion remains relevant and profitable across geographies.

Management Changes: A Risk or a Strategic Move?

The recent leadership transition at Wilson—Joe Dudy stepping down as CEO and Andrew Page taking over as interim CEO—has raised questions about continuity. Dudy's six-year tenure was marked by significant growth, and his advisory role until March 2026 provides a buffer for knowledge transfer. Page, as CFO, brings financial acumen to the role, ensuring that DTC investments remain aligned with profitability goals.

While leadership changes can introduce short-term volatility, Amer Sports has demonstrated resilience in past transitions. The company's updated full-year guidance—projecting 7–9% revenue growth and 3–4% operating margins for the Ball & Racquet segment—suggests confidence in maintaining Wilson's momentum. Investors should monitor how Page balances DTC expansion with margin preservation, particularly in light of Wilson's aggressive store growth.

Investment Thesis: A High-Conviction Play

Amer Sports' DTC strategy is a rare combination of scalability, margin discipline, and brand strength. The company's ability to execute store expansions while expanding margins (e.g., Outdoor Performance's 720-basis-point improvement) signals operational excellence. Moreover, its premium brands are well-positioned to capitalize on the global shift toward experiential and performance-driven consumption.

For investors, the key risks include macroeconomic headwinds and the success of the Wilson leadership transition. However, the company's diversified portfolio and strong balance sheet provide a margin of safety. Given its 40% DTC revenue growth in Q2 2025 and updated guidance, Amer Sports represents a compelling long-term investment for those seeking exposure to the premium DTC space.

Final Recommendation: Buy for long-term growth, with a focus on DTC margin expansion and brand-led innovation. Monitor Wilson's performance under Andrew Page and the impact of global tariffs, but remain confident in the company's strategic execution.