Arc'teryx and Salomon show dual-track growth as Amer Sports bets on women and footwear

The growth story of Amer Sports is shifting from the explosive performance of a single brand to the synergistic expansion of multiple brands.

In the first quarter, Amer Sports achieved revenue of $1.945 billion, a year-on-year increase of 32%. Adjusted gross margin rose to 60%, while adjusted operating margin improved to 17.4%.

The main drivers of this round of growth are still Arc'teryx and Salomon.

Among them, the Technical Apparel division—home to Arc'teryx—posted first quarter revenue of $885 million, up 33% year-on-year, with an adjusted operating margin reaching 26.4%.

As the most profitable brand within the Amer system, Arc'teryx continues to serve as the "profit anchor." Unlike the early days when growth relied more on Greater China, this quarter Arc'teryx achieved double-digit growth in all four major regions, with a clear acceleration in the North American market.

Management mentioned on the earnings call that women's products continued their strong momentum in the first quarter, growing faster than any other Arc'teryx category. The brand is attracting new female consumers, and participation and spending from existing female users are also on the rise.

Management stated that as the brand continues to improve fit, style, and functionality, and leverages its design strengths to expand its product portfolio, brand affinity with female consumers is increasing for Arc'teryx.

For high-end outdoor brands, the women's market not only represents incremental customer acquisition, but also means more scenarios for everyday wear. Compared to lower-frequency needs like mountaineering and skiing, commuting, travel, urban outdoor, and light sports have higher usage frequency, which also helps drive long-term repeat purchases.

Salomon, on the other hand, is the most elastic potential growth engine for Amer right now.

In the first quarter, the Outdoor Performance segment—home to Salomon—generated revenue of $714 million, up 42% year-on-year, with adjusted operating margin reaching 20.4%.

On the earnings call, the company made it clear that footwear has become a very important growth engine for Salomon. Its growth is extending across regions and channels, covering both sports fashion and performance sports product lines.

The former is a key entry point for Salomon to reach a larger market. For example, series like XT-6 and XT-Whisper not only retain outdoor functionalities, but are also more easily incorporated into daily wear and trend-driven consumption contexts.

This means Salomon's growth is no longer reliant solely on the professional running, hiking, or trail user base. Especially among young consumers and women, Salomon is building connections in ways rarely seen for traditional outdoor brands.

At the same time, the company noted that the new GRVL series is helping Salomon break into the running shoe market in unprecedented ways; in North America and EMEA, Salomon is also gaining traction in specialized running channels.

Regionally, Greater China was Salomon’s fastest-growing market in the first quarter. The brand’s offline expansion in Greater China is also clearly accelerating.

By the end of Q1, Salomon had 302 stores across Greater China; the company expects to have a net addition of 45 Salomon stores in Greater China in 2026, higher than previous plans.

However, this is not just about "opening more stores."

The company emphasized that Salomon’s store opening strategy in China is shifting from quantity expansion to store upgrading: choosing more core shopping centers, larger floor areas, and reserving more display space for apparel and accessories. The newly opened Salomon flagship at Beijing Chaoyang Heshenghui is over 8,000 square feet, offering a complete footwear and apparel line as well as a more complete consumer experience.

This approach is similar to what Arc'teryx has done in China over the past few years: first establish brand awareness through high-potential flagship stores in key cities, then gradually improve full-category sales capability.

With footwear becoming the main traffic entry point, apparel, bags, socks, and other soft goods are expected to become key drivers for increasing average transaction value and profit margins.

In Q1, DTC revenue for the Outdoor Performance segment, which includes Salomon, rose 57% year-on-year, mainly driven by new stores and improved store efficiency. Salomon stores performed particularly well in Greater China, Asia Pacific, and the Americas.

This also provides important incremental gains for Amer’s overall DTC channel expansion.

In the first quarter, Amer’s DTC revenue reached $1.002 billion, growing 44.6% year-on-year and accounting for more than half of total revenue; wholesale revenue rose 21% year-on-year.

The rising share of DTC is not just a channel structure change. Owned retail stores and e-commerce allow Amer to better control pricing systems, shape brand experience, and accumulate consumer data.

For premium brands like Arc'teryx and Salomon, expanding DTC also directly improves gross margin and operational quality.

Of course, high growth is also accompanied by capital pressures. Store expansion, IT infrastructure, marketing campaigns, and product development all require sustained capital spending. The company expects full-year capital expenditures at around $400 million, mainly for retail expansion and IT infrastructure investment.

In the first quarter, Amer’s inventory increased 33% year-on-year to $1.688 billion, slightly higher than revenue growth.

After the Q1 performance exceeded expectations, Amer raised its full-year revenue growth guidance from 16%-18% to 20%-22%. Whether Arc'teryx and Salomon can continue to maintain brand momentum and channel quality during expansion will determine the sustainability of this growth phase.