Buffett Brain · Research note
Score updated 5 Oct 2026 · analysis from 18 May 2026
AS· Consumer Discretionary
Amer Sports
Amer Sports owns Arc'teryx and Wilson but a 42.7x P/E and five-year ROIC averaging -0.6% put the brand premium under scrutiny.
Buffett fit
Weak fit
Owner
30
Durability
38
Management
77
Price
58
Score updated 5 Oct 2026 · analysis from 18 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Holding Amer for ten years is essentially a bet on Arc'teryx becoming the Lululemon of technical outerwear, with Salomon and Wilson as supporting cash cows.
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The Arc'teryx brand has genuine staying power if the team protects price integrity and avoids overdistribution.
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Share count grew 3.2% annually, partly tied to the recent IPO. Debt/equity at 0.42 is moderate and /Net Income of 1.18x shows real cash conversion.
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A 42.7x and 30.5x EV/ bake in years of margin expansion. The 2.7% owner-earnings yield does not compensate for execution risk if China spending slows or Arc'teryx category competition intensifies.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
6- 157.6% signals genuine brand-level
- 221.0% five-year revenue CAGR with Arc'teryx leading the charge
- 3/Net Income of 1.18x confirms earnings convert to cash
- 4Interest coverage of 7.14x is comfortable
Concerns
5- 15-year average of -0.6% means the inflection is very recent
- 2Net income was negative in at least one of the past five years
- 342.7x and 30.5x EV/ leave little
- 4Net debt/EBITDA of 2.13x adds modest risk
Price history
$27.17+81.7%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Amer Sports is the Finnish-rooted house behind Arc'teryx outerwear, Salomon footwear, and Wilson racquets, selling sports equipment, apparel, and footwear across EMEA, the Americas, China, and APAC. sits at a healthy 57.6%, which is brand-grade, but of 10.6% reveals heavy SG&A from running multiple premium labels through wholesale and DTC channels. The Arc'teryx halo is the engine: roughly 21% revenue CAGR over five years was driven by China expansion and DTC mix shift. Inventory turns and channel discipline matter more here than at most apparel peers.
What other investors would say
The same company, judged by three other documented playbooks.
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