A bad start to the year for outdoor stocks

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Un repaso mensual al Artiga Outdoor Brands Index. Marzo 2022.

The world markets, whether the MSCI World, the SP500 or the Eurostoxx50, rose in March to almost recover the losses they had been dragging down in the first two months of this year. What has happened to the stocks linked to the outdoor sector? If we take a quick look at the Outdoor Brands Index, we can see how the sector has followed a completely opposite trajectory to its comparables.

While the overall market posted modest gains, publicly traded outdoor companies began to fall after a steady start to the year, weathering the downpour of the economic slowdown, energy crisis, inflation and conflict in Ukraine.

The performance of this group of stocks did not bring joy to investors, as the AOBI index continued to fall, while the overall market was able to post some modest gains.

The biggest culprit for the index decline was the largest position by size, ANTA Sports (HKG:2020), which has lost almost 20% so far this month. Most of the other companies in our index fell albeit to a lesser extent, and even some such as Kathmandu Holdings (NZE:KMD) or Clarus Corp (NASDAQ:CLAR) have even posted moderate share price gains.

The Artiga Outdoor Brands Index is a capitalization-weighted index, in which Anta Sports stands out from the average with a weight close to 30%. Therefore, a sharp drop of close to 20% in a single month produces strong movements in the composition and performance of the index. This is a broad summary of the events.

The artiga Outdoor Brands Index in comparison. March 2022

  • SP 500: -1%
  • MSCI World: -1,8%
  • Eurostoxx50: -5,5%
  • Ibex 35: -1,6%
  • AOBI: -17,3%
  • YTD Values (Year-to-date)

Artiga Outdoor Brands Index valuation. March 2022

A look inside the Outdoor Brands Index. March 2022

ANTA Sports Products Ltd. (HKG: 2020) – Weight 34,3%

ANTA is the owner of Amer Sports and its portfolio of outdoor sports brands such as Salomon, Arc'teryx, Armada Skis and Atomic.

VF Corp. (NYSE: VFC) – Weight 22,0%

One of the largest and most influential companies in the outdoor industry. VF manages brands such as The North Face, Altra, Icebreaker, Smartwool and Timberland.

Columbia Sportswear Co. (Nasdaq: COLM) – Weight 5,8%

In addition to the Columbia brand, the Oregon-based apparel and footwear giant includes Mountain Hardwear, prAna and SOREL in its portfolio.

Canada Goose Holdings Inc. (TSE:GOOS) – Weight 2,8%

In addition to its apparel brand, Canada Goose owns and operates the Baffin footwear brand.

Fenix Outdoor International AG (STO: FOI-B) – Weight 1,5%

The Swiss company's outdoor brands include Fjallraven, Royal Robbins and Primus.

Clarus Corp. (Nasdaq: CLAR) – Weight 0,9%

Clarus is a holding company whose flagship brand is Black Diamond, as well as owner of Rhino-Rack, Pieps, SKINourishment and Sierra.