Anta Earnings: Solid Sales Performance With Amer IPO on the Horizon; Shares Remain Attractive

We maintain our fair value estimate on Anta after its latest fourth-quarter retail sales report, which showed solid performance in line with expectations. The company remains optimistic about the full-year profitability, though guidance for 2024 is still on hold until the full-year results are published in March. The big news from this update is the plan to separately list its joint venture Amer, owner of brands such as Arc'teryx, Solomon, and Wilson. We view the listing as value-neutral to shareholders as most of the IPO proceeds will be used to pay down debts. Still, additional disclosures will allow investors to better assess Amer’s long-term outlook. We continue to view Anta’s shares as undervalued.