HONG KONG, Nov 19 (Reuters Breakingviews) - China’s new hobbies will be bad news for most retailers. A fad for biking, hiking, and other physical endeavours has helped companies like $10 billion Amer Sports (AS.N) , opens new tab tempt shoppers, and the maker of trail shoes and skis is growing sales despite a sluggish economy.
But a yen for adventure won’t necessarily be a boon for other brands. Amer, known for its Arc’teryx, Salomon and Wilson brands, will report results for the three months to the end of September on Tuesday. Quarterly revenue from Greater China is forecast to top $280 million and account for around a fifth of the total, according to the average of analysts' forecast collected by Visible Alpha.
That puts the region's sales growth on track to hit 40% this year - outpacing other markets. Since Amer's New York listing in January, its shares have sprinted ahead 50% and now trade on 28 times earnings for the next 12 months, a premium to pure-play consumer stocks like LVMH (LVMH.PA) , opens new tab and Chinese liquor giant Kweichow Moutai (600519.
SS) , opens new tab , which both trade on 20 times. Other outdoorsy bets are also enjoying a good run. Sales of Lululemon (LULU.
O) , opens new tab athletic apparel, Shimano (7309.T) , opens new tab bike gear and Deckers Outdoor’s (DECK.N) , opens new tab Hoka sneakers are all climbing.
Events such as marathons and even ultra marathons are increasingly common, and popular , opens new tab : only 15% of applicants f.