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Economic Insight > Blog > Finance > A New Star in Consumer Discretionary?
A New Star in Consumer Discretionary?
Finance

A New Star in Consumer Discretionary?

EC Team
Last updated: May 29, 2025 9:23 am
EC Team
Published May 29, 2025
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Today’s Amer Sports

As90 Day Performance

Amer Sports

$37.67 -0.83 (-2.16%)

As of 05/28/2025, 03:59 PM Eastern

52 weeks range
$10.11

▼

$39.03

Price target
$36.67

Among the biggest rebounders in 2025 is Amer Sports, one of the hottest names in the consumer discretion department of the past year or so. NYSE: AS. Since its launch in February 2024, Amer Sports has seen its shares rise by around 187% as of the end of May 23rd. This dramatic rise reminds me of the image of explosive returns seen by other consumer discretionary stocks. NYSE:ONON And the outdoor Deckers NYSE: Deck The past few years.

So, can you continue with the incredible running of Amer Sport? Are apparel and footwear inventory a new feature in outdoor running and decker inventory in the current market?

To answer that question, let’s break down what Amer Sports is doing and its economic progress.

Amer Sports’ Strong Q1 Revenue

The rebound in that sector has helped Amer Sports recover a lot, but the company has done much of its lifting itself. Amer Sports’ highly impressive first quarter earnings resulted in the stock gaining 19% since then. The company has increased its sales by more than 23%.much faster than an analyst.” Expected growth rate below 17%.

Company’s company Doubled adjusted dilution revenue The per share (EPS) ranged from $0.11 to $0.27, which also significantly exceeded expectations. Amer has increased the midpoint of its full-year EPS guidance by over 4%, and increased the midpoint of its revenue growth guidance from 14% to 16%. Both of these numbers were firmly ahead of the analyst’s predictions.

AS: The underlying driver looks just as impressive

Today’s Amer Sports Stock predictions

12-month stock price forecast:
$36.67
-2.66% downsideMedium purchase
Based on 14 analyst ratings
Current price $37.67
High prediction $50.00
Average forecast $36.67
Low prediction $30.00

More about Amer Sports Stock forecasts

As is usually the case with hot clothes and footwear stock, Amer Sports’ success is about the brands it owns. Arc’teryx is the biggest and most important brand of Amer Sports. Arc’teryx makes very high-end outdoor clothing. In particular, it is known for its lightweight waterproof jackets, and is available in prices ranging from $400 to $900.

The technical apparel segment of the company where Arc’teryx is Fastest revenue growth rate of 28%accounts for 45% of total revenue.

Amer’s promising geography-based sales also stand out. China’s big sales increased 43%, accounting for around 25% of total revenue in 2024. In the last quarter, the US accounted for 26% of revenue, while the company’s “American” sales increased by 12%.

This shows that the company has a strong presence in the two largest economies of the world, giving it a strong runway to grow its business.

Company’s 39% direct consumer (DTC) growth It also surpassed the wholesale channel’s 12% growth more than three times. This is another very positive indication as DTC sales will cut back on intermediaries and allow the company to generate higher margins. The higher the growth rate of DTC, the more likely it is because it has the ability to continue to expand its margins.

Furthermore, it is the second largest segment in the company. Outdoor performanceI saw it The growth rate is almost 25%. This segment accounted for 34% of total revenue. This was driven by strong performance from Salomon’s footwear and apparel lines. The company sees strong long-term growth potential for Salomon shoes.

They generated revenue of $1 billion in 2024, giving less than 1% market share in the global $180 billion sneaker market. The company also plans to deploy more Arc’teryx footwear in the second half of 2025, allowing for another way to penetrate this market.

Amer Sports: High-valued stocks with opportunity and skilled management

Overall, we can see the rapid growth thanks to Amer Sports’ strong pathways for success and growth and increased profitability. Wall Street analysts have significantly raised their price targets after the results on May 20th. Of those tracked by MarketBeat, which updated their subsequent forecasts, the average The price target is just under $41.

This means that the stock’s rise by just 6% from its May 27th closing price.

Furthermore, the company’s relative ratings and industry’s relative ratings appear to be on the rise. Price vs. Earning rate almost 49 times the stock It is well above the 29x average for the eight US stock group in the industry. However, the company also has one of the best revenue and sales growth profiles.

It may be a bit unreasonable at these levels to expect to continue generating returns similar to On and Decker in its heyday.

If the company wants Continue to break predictions significantlyexpectations continue to rise. The possibility of footwear can cause this.

The company’s great execution and ability to create products that resonate with consumers is hard to bet. Overall, investors should take a bit of Amer Sports Highly risk, high-reward consumer discretion I’ll play it in the future.

You’ll want to hear this before considering Amer Sports.

MarketBeat tracks the top rated and best-performing research analysts on Wall Street, as well as stocks they recommend to their clients every day. MarketBeat quietly whispered to clients before the broader market emerged, identifying five stocks to buy now…and Amer Sports was not on the list.

Amer Sports currently has a moderate purchase rating among analysts, but top rated analysts think these five stocks are better purchases.

Here we show 5 stocks

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Contents
Today’s Amer SportsAmer Sports’ Strong Q1 RevenueAS: The underlying driver looks just as impressiveToday’s Amer Sports Stock predictionsAmer Sports: High-valued stocks with opportunity and skilled management

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