(Yicai) Sept. 22 -- Although Arc’teryx’s weekend fireworks show in the Xizang Autonomous Region sparked controversy with some customers vowing to boycott the brand over environmental concerns, initial checks by Yicai indicate that the outdoor apparel company, established in Canada and controlled by Chinese sportswear giant Anta, has so far seen little impact on sales.

Even though Arc’teryx issued an apology yesterday, some customers told Yicai that they felt the campaign showed a surprising lack of common sense, while others said the incident highlighted the need for brands to be more careful with marketing stunts, especially when it comes to environmental approvals and the boundaries of artistic expression.

There were plenty of customers browsing or trying on products at Arc’teryx’s double-storey store in the Bailian Outlets Plaza in Shanghai’s Qingpu district yesterday, a Yicai reporter noticed. There were more male shoppers than female ones and, over a period of half an hour, two purchases were made.

Customer traffic this weekend was the same as usual and there has been no noticeable fallout from the fireworks show, a salesperson said. Store discounts remain in the 10 percent and 30 percent range, and they have not received any new instructions from headquarters about further markdowns.

Arc’teryx’s Finnish parent company Amer Sports, in which a consortium led by Jinjiang-based Anta owns a controlling stake, does not disclose revenue for individual brands. In 2024, Amer Sports posted revenue of USD5.1 billion with earnings from its outdoor apparel division, which is centered on Arc’teryx, soaring 36 percent year-on-year to USD2.1 billion, making it the firm’s highest grossing business segment.

By region, Helsinki-based Amer Sports earned USD1.2 billion in China last year, compared with USD1.8 billion in the Americas, which is its largest market, followed by Europe, the Middle East and Africa with USD1.5 billion.

Notably, the balance shifted this year. China revenue surged 42 percent in the second quarter year on year to USD410 million, overtaking the Americas as the company’s largest market. Revenue in the Americas climbed 6 percent to USD395 million, while that from the EMEA region stayed the same at USD276 million.

Arc’teryx will reduce the number of outlets in China this year, and will close some legacy partner stores and factory outlets, Amer Sports Chief Executive Officer Zheng Jie said at the second-quarter earnings call.

This includes closing some legacy partner stores and factory outlet stores. However, Arc’teryx still plans to boost its image in China by opening larger, better stores with higher sales per square meter. The company will reduce discounts and its outlet business in the future, Zheng said.

Editor: Kim Taylor