Amer Sports, Inc. (AS): Among the Hot New Stocks to Buy Now

Amer Sports, Inc. (AS) has been making waves in the premium sports and outdoor market, and investors are taking notice. With a unique portfolio of brands and a decentralized 'brand-direct' business model, AS is poised for long-term growth and profitability. Let's dive into the key metrics and strategies that make Amer Sports a hot new stock to buy now.



1. Revenue Growth: Amer Sports has consistently reported high revenue growth rates, with reported revenue growth of 16-17% in the third quarter of 2024 and an expected full-year growth rate of 16-17% (Source: Amer Sports' Third Quarter 2024 Financial Results). This growth is driven by the strong performance of its brands, such as Arc'teryx, Salomon, and Wilson, which have each generated over $1 billion in revenues and continue to exhibit healthy growth trends.
2. Gross Margin Expansion: Amer Sports has reported significant gross margin expansion, with adjusted gross margin increasing by 410 basis points to 55.5% in the third quarter of 2024 (Source: Amer Sports' Third Quarter 2024 Financial Results). This expansion reflects a healthy underlying shift in the business mix and strong brand health and longevity.
3. Operating Margin Expansion: Amer Sports has reported significant operating margin expansion, with adjusted operating margin increasing by 280 basis points to 14.4% in the third quarter of 2024 (Source: Amer Sports' Third Quarter 2024 Financial Results). This expansion is driven by the strong performance of the company's brands and its ability to optimize its go-to-market strategies.
4. Brand Performance: Each of Amer Sports' hero brands—Arc'teryx, Salomon, and Wilson—has generated over $1 billion in revenues and continues to exhibit healthy growth trends. For example, Arc'teryx reported revenue growth of 34% in the third quarter of 2024, with adjusted operating margin increasing by 370 basis points to 20.0% (Source: Amer Sports' Third Quarter 2024 Financial Results).
5. Geographic Expansion: Amer Sports' ability to expand its geographic footprint in large markets with high consumer demand is another important factor in evaluating its long-term growth potential. The company has reported strong growth in key markets, such as Greater China, which reached 19% of total revenues in 2023, growing at a 61% CAGR since 2020 (Source: Amer Sports' 2023 Annual Report).



Amer Sports' decentralized 'brand-direct' business model has contributed significantly to its profitability and growth. This approach allows each brand to operate independently, focusing on its unique strengths and market position. However, the company must manage potential risks, such as silos, brand-specific market fluctuations, and the loss of synergies, to maintain its success.

To maintain its competitive edge in high-demand markets, Amer Sports should implement the following strategies:

1. Strengthen brand awareness and localization by investing in marketing and advertising campaigns tailored to local markets and localizing product offerings to cater to regional preferences and needs.
2. Expand the retail footprint by opening new retail stores and expanding e-commerce presence in high-demand markets, and consider strategic partnerships with local retailers to reach a broader customer base.
3. Innovate and differentiate by continuously introducing new products that cater to local trends and consumer preferences and differentiate products and services to stand out from competitors.
4. Invest in local talent and supply chain by hiring local talent to better understand and serve the local market and strengthening the local supply chain to ensure timely and efficient delivery of products.

By focusing on these key financial metrics and implementing these strategies, Amer Sports can maintain its competitive edge in high-demand markets and continue its strong performance in regions like Greater China. With its unique portfolio of premium technical brands and decentralized 'brand-direct' business model, Amer Sports is a hot new stock to buy now.