Amer Sports Boston Consulting Group Matrix

Amer Sports has seen remarkable expansion in its direct-to-consumer (DTC) channel, a key driver of its business strategy. In the first quarter of 2025, this channel experienced a robust 39% growth. This momentum continued throughout fiscal year 2024, with DTC sales increasing by 42.7%.

The strategic pivot towards owned retail and e-commerce is paying off handsomely, with the DTC channel now accounting for a substantial 44% of Amer Sports' total revenues. Brands like Arc'teryx and Salomon are particularly benefiting from this shift, enjoying enhanced operating profitability and more direct interactions with their customer base.

Continued investment in this high-growth DTC model is essential for Amer Sports to maintain its competitive edge and capture more value from its customer relationships. This focus on owned channels allows for greater control over brand experience and a deeper understanding of consumer preferences.

Within Amer Sports' portfolio, both Arc'teryx and Salomon's footwear are prime examples of Stars. Arc'teryx's technical apparel division saw a 28% revenue jump in Q1 2025, following a 36% surge in FY 2024. Salomon's footwear, especially its lifestyle lines, surpassed $1 billion in sales in 2024, driven by strong consumer trends.

These brands exhibit high market share in rapidly growing segments, demanding continued investment to maintain their leading positions and capitalize on further expansion opportunities. Their performance underscores their critical role in driving Amer Sports' overall growth and profitability.

The direct-to-consumer (DTC) channel, a key growth driver for Amer Sports, experienced a 39% increase in Q1 2025, building on a 42.7% rise in FY 2024. This channel now represents 44% of total revenues, with brands like Arc'teryx and Salomon benefiting significantly from enhanced customer engagement and profitability.

The Greater China region is a significant growth engine, with revenue surging 43% in Q1 2025 after an over 50% increase in FY 2024, fueled by strong demand for brands like Arc'teryx and Salomon. The broader Asia-Pacific market mirrored this, with a 49% revenue increase in Q1 2025.

Salomon's core outdoor performance gear, such as hiking and trail running shoes, remains a robust performer, distinct from the burgeoning lifestyle footwear trend. This segment consistently generates revenue and profit, underpinned by Salomon's long-standing reputation for technical innovation and quality among serious outdoor athletes. These products are key contributors to the stable cash flow within Amer Sports' Outdoor Performance division.

The wholesale distribution channel for Amer Sports acts as a significant Cash Cow, contributing 56.3% of total revenue in 2024 and showing a 12% growth in Q1 2025.

This channel's extensive reach through sporting goods retailers provides a steady, predictable cash flow, allowing Amer Sports to invest in higher-growth areas.

The established relationships and sheer volume within wholesale ensure a stable financial foundation for the company.

Wilson's team sports equipment, including baseball and softball gear, also functions as a Cash Cow, demonstrating stable demand from organized sports and requiring minimal new investment.

Amer Sports, a global leader in sports equipment, likely possesses certain product lines that are considered non-core and stagnant. These might be older models or niche items that operate in low-growth markets with a negligible market share. For instance, a legacy line of a particular type of ski boot that hasn't seen innovation or market traction could fall into this category.

These stagnant offerings often represent products that no longer align with Amer Sports' strategic focus on premium, high-performance gear. They may struggle to compete against newer, more advanced alternatives. Such products typically operate at a break-even point, consuming valuable resources like marketing spend and inventory management without generating significant returns or contributing to the company's overall growth trajectory.

In 2023, Amer Sports reported net sales of €4,083.6 million, showcasing strong performance across its core brands like Salomon, Arc'teryx, and Wilson. However, within this vast portfolio, it's plausible that smaller, less strategic product categories, perhaps representing less than 5% of total revenue, are experiencing minimal growth, making them candidates for strategic review and potential divestment to optimize resource allocation.

Within Amer Sports' broad product portfolio, certain legacy or niche offerings likely reside in the Dogs quadrant. These are products with low market share in slow-growing or declining markets, generating minimal profits or even losses. For example, a specific line of older tennis racquets from Wilson, which has seen significant technological advancements and market shifts, could be a candidate if it holds a small market share and faces declining sales.

These "Dog" products often consume resources without contributing meaningfully to overall growth or profitability. They might be found in segments where Amer Sports has a limited competitive advantage or where consumer demand has waned. The company's reported negative adjusted operating profit margin of -3.7% in Q4 2024 for the Ball & Racquet Sports segment highlights that some product lines within even growing segments can be underperformers.

Identifying and managing these Dog products is crucial for efficient capital allocation. Amer Sports' strategic focus on optimizing its retail footprint, including closing underperforming stores, suggests a broader effort to shed less productive assets and reinvest in higher-potential areas. This includes re-evaluating traditional wholesale partnerships that may no longer yield sufficient returns compared to direct-to-consumer channels.

These underperforming product lines typically exhibit low market share and face stagnant or declining demand. They represent an inefficient use of capital, tying up resources without contributing significantly to profitability. Such categories may warrant divestiture or significant restructuring to improve their financial standing or free up capital for more promising ventures.

Salomon's foray into the urban lifestyle segment, particularly with its footwear, is a prime example of a 'Star' in the BCG matrix. The brand's success in the 'gorpcore' trend and strategic collaborations have significantly boosted its visibility, but its market share in the broader urban and fashion sneaker market remains modest when compared to established giants. This presents a high-growth opportunity, demanding considerable investment in marketing and distribution to solidify its position.

Question Marks in Amer Sports' portfolio represent areas with high growth potential but currently low market share. These are often new ventures or categories where the company is investing heavily to establish a foothold. The success of these Question Marks hinges on continued investment and effective strategy execution to convert them into Stars or Cash Cows.

Amer Sports' expansion into emerging sports like Padel and Pickleball, with Wilson showing strong Q4 2024 performance, exemplifies this. Similarly, Wilson's aggressive push into the competitive tennis apparel and footwear markets, aiming for 50 new shops in China by 2025, falls into this category.

These initiatives, while promising, require significant capital outlay for product development, marketing, and distribution. The company must carefully manage these investments to ensure they translate into sustainable market share and profitability, avoiding the risk of becoming Dogs if market penetration falters.

The digital innovation and circular economy models, such as Arc'teryx's ReBIRD service centers, also fit the Question Mark profile, representing investments in future growth drivers whose market impact is still being assessed.