Amer Sports Plummets 5.3% on Earnings Volatility and Strategic Shifts – Is This a Buying Opportunity?

Summary
• Amer Sports (AS) slumps 5.3% intraday to $35.46, erasing $2B in market cap
• Q2 2025 revenue surges 23% to $1.236B, with Salomon footwear growth hitting 35%
• Wilson CEO Joe Dudy exits, CFO Andrew Page steps in as interim leader
• Options chain shows 53.55% implied volatility on $32.5 puts, 47.27% on $37.5 calls

Amer Sports’ stock is in freefall despite a blockbuster second-quarter report, raising questions about market skepticism toward its revised guidance and leadership shakeup. The stock’s 5.3% drop has pushed it closer to its 52-week low of $15.9, while technical indicators and options activity suggest a volatile near-term outlook. With Salomon’s footwear acceleration and Arc’teryx’s momentum driving revenue growth, the disconnect between fundamentals and price action demands closer scrutiny.

Earnings Optimism Clashes with Leadership Uncertainty
Amer Sports’ 5.3% intraday decline defies its Q2 2025 results, which showed 23% revenue growth to $1.236B and a 58.5% gross margin. The stock’s selloff appears tied to two key factors: 1) Market skepticism over management’s raised full-year guidance, which now assumes 30% U.S. tariffs on Chinese imports remain in place, and 2) Joe Dudy’s departure as Wilson CEO, with CFO Andrew Page stepping in as interim leader. While the company cites 'negligible' tariff impact, the options market tells a different story—$32.5 puts are trading at 125.81% price change ratio, reflecting bearish sentiment. The stock’s 52-week high of $42.36 now feels distant as it trades near its 200-day moving average of $32.11.

Apparel Sector Rally as Nike Gains 1.8%
The Apparel, Accessories, and Footwear sector is in a bull phase, with Nike (NKE) surging 1.8% on strong demand for its direct-to-consumer strategy. Amer Sports’ 5.3% drop contrasts sharply with sector strength, highlighting investor concerns about its reliance on Asia-Pacific markets and direct-to-consumer expansion. While Nike’s 1.8% gain reflects confidence in its Gen Z-focused product lines, Amer Sports faces execution risks in its Greater China and APAC markets, where demand volatility could amplify downside pressure.

Options Playbook: Capitalizing on Volatility and Technical Breakouts
• 200-day average: $32.11 (below current price)
• RSI: 34.39 (oversold)
• MACD: -0.29 (bearish divergence)
• Bollinger Bands: $34.71 (lower band) to $41.75 (upper band)

Amer Sports is trading near critical support at $34.71 (lower Bollinger Band) and its 200-day moving average. The RSI at 34.39 suggests oversold conditions, while the MACD histogram (-0.026) indicates weakening bearish momentum. For aggressive traders, the AS20251017P35 put option (strike $35, expiration 10/17) offers 74.70% price change potential with 23.09% leverage. This contract has 52.24% implied volatility and 0.077 gamma, making it responsive to price swings. A 5% downside scenario (to $33.69) would yield a put payoff of $1.31 per contract. For bulls, the AS20251017C37.5 call (strike $37.5, 10/17) has 47.27% IV and 0.0848 gamma, offering 31.12% leverage. A 5% rebound to $37.23 would generate a call payoff of $1.77. Both contracts have high turnover (797,014 and 990,075 shares), ensuring liquidity. Aggressive bulls may consider AS20251017C37.5 into a bounce above $37.5, while bears should watch the $34.71 support level for a short entry.

Backtest Amer Sports Stock Performance
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Rebound or Reckoning? Key Levels to Watch Before Earnings
Amer Sports’ 5.3% drop has created a technical setup where oversold conditions and elevated volatility could spark a rebound—or a breakdown. The stock’s ability to hold above $34.71 (lower Bollinger Band) and its 200-day moving average will be critical. With Nike (NKE) surging 1.8% on sector strength, investors should monitor whether Amer Sports’ management changes and tariff assumptions hold up under scrutiny. For now, watch the $34.71 support level and consider the AS20251017P35 put if the price breaks below $34.61.