Arc’teryx, the Canada-founded outdoor label, has come under fire in China after setting off fireworks in Tibet’s Himalayas as part of a marketing campaign.
Critics said the display risked harming the fragile plateau ecosystem and violated the “leave no trace” principle that outdoor brands are expected to uphold.
On September 21, the Shigatse municipality in Tibet said it had dispatched an investigation team to the site. Hours later, Arc’teryx issued an apology, admitting its artistic judgment should have been more professional and pledging to show greater humility toward nature. The company said it would review the ecological impact of the stunt under government oversight, hire a third-party evaluator, and take corrective actions if needed.
Despite the mea culpa, consumer anger spilled into markets. Shares of Anta Sports, which owns Arc’teryx’s parent Amer Sports, opened sharply lower on September 22, dropping more than 5% before closing at HKD 95.55 (USD 12.3), down 1.29% for the day.
Anta led a consortium that acquired Amer in February 2019, making Arc’teryx a flagship brand in its portfolio. Amer relisted on the New York Stock Exchange in February 2024, and Anta’s stake has since diluted to 39.49% following secondary offerings.
Although Amer’s earnings have begun contributing to Anta’s bottom line, the impact is still limited. At its 2024 earnings call, Anta reported RMB 200 million (USD 28 million) in profit distribution from Amer, less than 2% of its RMB 11.9 billion (USD 1.7 billion) net profit.
The fallout from the fireworks incident is therefore less about direct financial loss and more about Anta’s reputation for brand management. Observers noted the contrast with Anta’s Fila unit, which in August partnered with Tmall on a campaign that explicitly followed a “leave no trace” ethos. Arc’teryx’s apology appeared to place responsibility on its China operations, describing the display as “in direct opposition” to the company’s environmental values.
The controversy coincides with a management reshuffle at Amer. In June, the company appointed Jeffery Ma, a veteran of Qiaodan, Topsports, and Adidas, as president for Greater China. The transition comes as Arc’teryx faces slowing growth.
In the first half of 2025, Amer reported revenue of USD 2.709 billion, up 23.5% year-on-year, with Greater China contributing USD 856 million. Yet Arc’teryx’s technical apparel division posted USD 509 million in revenue, up 23% but a sharp deceleration from the prior year. Same-store sales growth also slowed, rising 15% in the second quarter compared to 26% a year earlier.
To offset the slowdown, Arc’teryx has leaned on footwear. CEO Stuart Haselden said shoes are now about 10% of revenue after growing more than 60% in 2024, and a new line is set to launch later this year. Industry peers often view footwear as a benchmark of credibility, and for Arc’teryx—positioned increasingly as a premium brand—the category may help restore its technical edge.
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Amer CEO Zheng Jie said the company will focus on optimizing Arc’teryx’s retail network in China, with plans to close legacy partner stores while opening larger, self-operated outlets. Meanwhile, Amer has been investing heavily in Salomon, its other outdoor brand, which expanded to 256 stores by June, up 58% year-on-year.
Even as Amer raised its third-quarter guidance, projecting revenue growth above 20% and an adjusted operating margin at the top of its target range, Anta may face lingering reputational risks from Arc’teryx’s misstep in Tibet.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xie Yunzi for 36Kr.