Recently, Finnish sportswear group Amer Sports, parent company of brands including Arc’teryx, Salomon, and Wilson, released its financial results for the second quarter of 2025. The Technical Apparel segment, led by Arc’teryx, continued to perform strongly, with revenue rising 23% year-over-year to USD 509 million. Omni-channel comparable sales, which include both owned retail stores and e-commerce, grew 15% year-over-year.
Luxeplace notes that over the past four quarters, the segment’s year-over-year revenue growth rates were 34%, 33%, 28%, and 23%, while omni-channel comparable sales growth was 20%, 29%, 19%, and 15%, respectively. As Amer Sports’ primary growth engine, is Arc’teryx beginning to “slow down”?
During the earnings call following the report, Amer Sports CEO James Zheng, CFO Andrew Page, and Arc’teryx CEO Stuart Haselden provided detailed insights into Arc’teryx’s current and future strategy. They clearly emphasized: this is not a passive “slowdown,” but a proactive strategic shift toward achieving higher-quality growth.
This article by Luxeplace takes a close look at the specifics of Arc’teryx’s strategic transformation, as shared by Amer Sports’ management:
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Net store closures in the Chinese Mainland this year
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Reducing discounting and outlet business
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Accelerating growth in footwear and high-potential women’s categories
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Reclaiming direct operations in South Korea to deepen presence in core markets
Net Store Closures in the Chinese Mainland in 2025
In terms of retail strategy, Arc’teryx is shifting from rapid store expansion to a more refined focus on store quality and sales per square meter—nowhere is this transition more apparent than in the Chinese market.
James Zheng set the tone clearly: “We believe that a high-quality retail network is far more important for long-term success than pursuing rapid expansion.”
“In Greater China, we are focused on optimizing Arc’teryx’s retail footprint rather than driving new store openings. This year, Arc’teryx will see a net reduction in store count across Greater China, including some legacy partner stores and factory outlets. However, we will significantly elevate the brand’s presence in China by opening large-format, high-quality, and high-efficiency stores. Looking ahead to 2026, following years of rationalization, we plan for Arc’teryx to return to net store openings in China.”
He elaborated with specific examples to illustrate what defines a “high-quality” retail network:
“Arc’teryx’s store expansion strategy takes various forms, from large-format, multi-level Alpha flagship stores to small-format, highly localized mountain-town shops.”
“We opened a new mountain-town store at the Banff resort in Canada, which has seen strong foot traffic since its April opening. It’s become one of the top-performing stores in the area, again demonstrating Arc’teryx’s appeal even during summer. We also opened a new flagship on Robson Street in Vancouver, one of the city’s premier retail locations, which has performed very well since opening in July.”
“In China, Arc’teryx opened the world’s first ‘Departure Store’ at The Peninsula Beijing (see image below). This store represents the pinnacle of our brand extension, designed for the ultimate luxury shopping experience.”
Reducing Discounting and Outlet Business
Regarding the slowdown in omni-channel comparable sales, management provided a detailed explanation behind the numbers, highlighting a deliberate reduction in discounting and outlet sales aimed at elevating brand value and improving profitability.
Andrew Page commented, “Lower outlet sales had a negative impact on comparable sales for Technical Apparel, as Arc’teryx continues to shift more toward full-price sales and restrict both online and offline outlet channels.“
Stuart Haselden provided further clarity on the impact of this strategy, making it clear that this is a welcome evolution for the brand: “Last year’s comparison base was high, and at the same time, we’ve seen a reduction in promotional sales. The share of discount-driven sales in Arc’teryx retail declined by approximately five percentage points year-over-year, giving us a higher mix of full-price business, which is beneficial to our margin profile. So, we’re seeing strong underlying trends in the business. Our full-price stores are showing strong comparable sales trends. Given the drop in outlet sales I mentioned, that segment likely pulled down overall comp sales by a mid-single-digit amount. So we’re very pleased to see this shift taking place.”
Accelerating Footwear and High-Potential Women’s Categories
While Arc’teryx is “slowing down” in terms of retail and channel expansion, it is simultaneously stepping on the gas on the product side. This is particularly so in footwear and women’s categories. Management emphasized repeatedly during the call that these two segments represent significant and profitable growth opportunities for the brand’s future.
James Zheng outlined the direction right from the start: “Arc’teryx once again delivered strong, broad-based performance across geographies, channels, and categories, especially in footwear and women’s, where growth continues to outpace the overall brand.”
He provided detailed updates on product developments and future plans: “Footwear remained Arc’teryx’s fastest-growing category in Q2, outpacing the brand overall, even against a triple-digit growth comp from last year.”
“This spring, we launched the Norvan LD 4—an updated version of our most popular long-distance trail running shoe. We also introduced the Vertex Speed, a mountain running shoe designed for tackling steep technical terrain. Looking ahead, Arc’teryx has an exciting lineup of new footwear launches in the second half of 2025. We continue to believe footwear will be a large and profitable growth avenue for Arc’teryx.”
Regarding the women’s business, Zheng noted: “The women’s product line continued to gain strong momentum in Q2, with double-digit growth across all regions, outperforming the brand overall. We see a tremendous opportunity to serve outdoor women in different ways through technical design and performance. The Clarkia performance pant (see image below) is a great example of our women-focused design approach. This product experienced explosive growth in Q2, selling out quickly both in stores and online. As we refine fit, style, and functionality, Arc’teryx is seeing growing brand awareness and affinity among female consumers in the US and Europe.”
Stuart Haselden backed up this momentum with further data, highlighting the strength and potential of the women’s segment: “Revenue from the women’s business grew by over 30% this quarter. We’re seeing continued growth in brand penetration and mix. So we’re excited to see the increasing importance of our women’s business, with certain SKUs showing explosive growth.
“In addition to the Clarkia, we recently launched several new models, the Nia Pant and the Altira cropped hardshell, both of which sold quickly after launch. So we’re very encouraged by the performance of products specifically designed for women, as we continue to broaden the assortment.
“This is an important validation of our product strategy. At the same time, we’re also seeing strong continued sales of our core products among female customers. So we really feel like we’re just getting started.”
Reclaiming Direct Control in South Korea to Strengthen Core Market Presence
In addition to internal operational optimization, Arc’teryx is also working to strengthen direct control over key international markets. Its latest move is the shift to direct operations in South Korea.
Andrew Page announced this key development: “We recently signed an asset purchase agreement to acquire substantially all of the assets and certain liabilities of Nelson Sports, Inc., which has been the exclusive distributor of Arc’teryx and Veilance in South Korea since 2001. We expect the transaction to close in the second half of 2025, after which the Korean market will be fully operated under a direct model rather than the traditional distributor approach. South Korea is a large active and luxury consumer market, and we believe there is still strong growth potential for Arc’teryx.“
Stuart Haselden expressed high expectations for this market: “We think the opportunity in Korea is exciting. It’s an incredible outdoor market. We’ve had a strong relationship with our partner for many years, but we believe we can now invest in the business in a new way and unlock meaningful upside, building on the strong foundation our partner has established. So yes, we definitely see upside in Korea.”
“We believe its revenue potential could even surpass that of Japan, and we’re already off to a good start.”
| Source: Amer Sports Earnings Call
| Image Credit: Brand Official Website
| Editor: LeZhi
