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Amer Sports Poised for Outperformance Amid Unique Positioning, Brand Momentum, Truist Says

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Amer Sports Poised for Outperformance Amid Unique Positioning, Brand Momentum, Truist Says

Amer Sports (AS) is positioned well to outperform despite a tough operating environment amid its unique positioning in the outdoor performance market, exposure to higher-income customers and brand popularity, Truist Securities said in a client note emailed Friday.

The brokerage is bullish on the momentum durability of footwear brand Salomon and outdoor apparel brand Arc'teryx, with limited penetration in the US providing high visibility into meeting or exceeding the sports equipment company's five-year growth algorithm.

Amer Sports' investments in Salomon have been key in generating momentum for the brand and increasing consumer awareness in the US, the note said. While the investments had previously pressured the company's near-term earnings outlook, the brokerage believes these concerns were worsened by negative signals from other brands about the health of the overall market, particularly the US channel, as well as broader footwear category concerns.

Truist estimates the Americas accounted for roughly 17% and 32% of Salomon's and Arc'teryx's sales in full-year 2025, while the wholesale presence for both brands remains "very limited." The brokerage expects robust direct-to-consumer trends from both brands when the company releases its latest quarterly results next week.

The current consensus on FactSet is for Amer Sports to report adjusted earnings of $0.11 per share and sales of $1.54 billion for the second quarter.

"We see room for upside as we expect (Amer Sports) will continue to beat and raise," Truist analyst Joseph Civello said in the note.

The brokerage has a buy rating on the company's stock with a price target of $50.

Earlier this week, athletic footwear company On Holding (ONON) tempered its full-year constant-currency sales growth outlook as its second-quarter revenue fell short of market estimates. In June, sportswear giant Nike (NKE) posted a year-over-year decline in its fiscal fourth-quarter revenue.

Price: $33.22, Change: $+0.10, Percent Change: +0.30%

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