Amer Sports Tees Up IPO

Key Takeaways:

• Arc’teryx, the technical apparel arm of Amer Sports, has the highest percentage of US ad spend in 2023 (~45%) amongst the company’s brands, while also having one of the highest increases in spend, up 125% YoY

  • Notably, the brands with the highest increase of spend in 2023 are brands with smaller niche specialities, like ENVE, a bike-components brand, and Peak Performance, another technical apparel brand, as both brands saw US ad spend increase 950% YoY and 300% YoY, respectively. However, US ad spend for both of these brands is still incredibly small, accounting for just 1% of Amer Sports’ spend

• Wilson, and its subsidiary, Louisville Slugger, had the slowest growth in US ad spend for 2023, rising only 35% YoY and 15% YoY, respectively. This is particularly surprising given that Wilson’s revenue mix is heavily dependent on US sales, accounting for 70% of the brand’s revenue

• In 2023, Wilson’s US ad spend did increase slightly during 4Q23, accounting for ~40% of its overall spend throughout the year, while spend stayed fairly consistent from 1Q23-3Q23. Wilson’s 4Q23 US ad spend was driven by fall sales as summer sports started to wind down prompting material discounts and sales promotions on outdoor sports equipment as the season ended

• Filtering Wilson’s US ad spend through creative text by sport finds that golf received the highest percentage of spend in 2023, accounting for ~40% of US ad spend in 2023. This was likely driven by higher inventory of golf products, as golf-related keywords only accounted for 8% of spend in 2022

  • In 2022, basketball was allotted the highest percentage of spend across all sports, at 45% and is the second most-popular sport by US ad spend in 2023 with ~30% of spend, as Wilson is promoting its recent global partnership with the NBA

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