Amer Sports latest investor update has outlined a strategy to prioritise soft goods and act to stem the decline seen with ENVE and Mavic, which some have speculated might include the option of selling the labels.
Amer Sports President and CEO Heikki Takala commented:
“ Now we accelerate further in Softgoods through Peak Performance, and we also review the portfolio focus opportunities as we place the Mavic Cycling business under strategic review. Next, we will complete the current strategy cycle of the Fitness and Sports Instruments businesses, both of which have positive momentum, and assess the alternatives for realizing their maximum potential. With our updated strategy, we expect to deliver strong continuous performance and attractive value creation.”
The companies current brand portfolio includes Salomon, Arc’teryx, Peak Performance, Atomic, Mavic, Suunto, Wilson and Precor.
Amer Sports aren’t alone in looking to sell off parts of their business. Vista Outdoor recently finalized the sale of Bollé, Cébé and Serengeti Brands, while the future ownership of Bell, Giro and Blackburn remains in the balance.
Wall St has been been keeping an eye on mid-size Amer Sports, for example in this article which outlines:
“Mid-caps stocks, like Amer Sports Corporation (HEL:AMEAS) with a market capitalization of €3.34b, aren’t the focus of most investors who prefer to direct their investments towards either large-cap or small-cap stocks. ”
This tends to suggest that sports brands generally, and cycling brands especially, may require a very specific type of investor and ownership structure. Possibly within the portfolio of one of the larger OEM suppliers?