Latest news with #ChipWilson
Yahoo
19 hours ago
- Business
- Yahoo
Sports Stocks Rebound as Tariff Fears Recede, TACO Trade Dominates
Sports stocks posted their first positive month since January as fears eased about tariffs, which had dragged the Sportico Sports Stock Index 23% lower from its mid-February peak to its late April lows. The benchmark sports index posted a 7% gain in May to close the month at 1,380, pushing the index back into positive territory for 2025. The strength in sports reflected the wider rebound seen in the broader markets, which saw action in the month dominated by knee-jerk reactions to Trump tariff announcements followed by sharp rebound days due what investors began calling the TACO trade. More from ESPN Bet Faces Make-or-Break Year for $2 Billion Disney-Penn Deal Chip Wilson Makes $600M as Trump Tariffs Barely Dent Amer Sports DraftKings the Exception to Sports SPACs' Dire Track Record 'The recent rally has a lot to do with markets realizing that the U.S. administration does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain. This is the Taco theory: Trump Always Chickens Out,' wrote Financial Times columnist Robert Armstrong in May, popularizing an acronym that began with Wall Street traders. The buying-on-weakness TACO trade resulted in three trading sessions in May when the Sportico Sports Stock Index jumped at least 2%. That's unusually volatile in the history of the index, but actually calmer than April, which had four such up days and five days of outsized losses. Given the tariff obsession of the markets, it's no surprise that one of the sports stocks most potentially impacted by the Trump tariffs was the lead gainer in May. Amer Sports (AS) leapt 50% in the month as management told investors the worst-case scenario of Trump's 145% import tax on Chinese made goods would clip five cents a share from earnings in 2025. Since at the time of Amer's earnings announcement last week Trump's had already backed off the 145% rate, shares rallied under the realization the profit hit would be far less for the year. Amer, which has 11 sporting goods brands including Arc'teryx, Salomon and Wilson, estimates perhaps 10% of its worldwide revenue would be subject to any U.S. taxes on Chinese goods, given its ability to source goods from other, less-taxed countries and the fact most of its sales come from Asia and Europe. Other tariff-exposed components of the Sportico index also rallied in the month. Sneaker maker On Holdings (ONON) gained 24%; concession firm Aramark (ARMK), which expected some hit on its concessions supplies like drinking cups, rallied 22%; while Asia-dependent gear markers Under Armour (UAA, up 17%) and Nike (NKE, up 7%) also rose. All told, 28 of the Sportico Sport Stock Index components rose in May, 13 of those more than 10%. Still, odds are tariff volatility will continue, despite a court ruling last week that Trump doesn't have the authority to impose blanket taxes on most imports, including from China, Canada and Mexico. 'We are going to end up with tariffs, one way or another—Trump has plenty of alternatives,' Aniket Shah, a Jefferies economist, said in a Thursday note on a U.S. Court of International Trade's decision invalidating the president's reasoning. The ruling, added Shah, 'is a body blow to President Trump's America First Trade Agenda, but not a fatal blow.' Though not directly affected by tariffs, ticket reseller Vivid Seats (SEAT) had a brutal May on fears of consumers pulling back spending. The stock surrendered 45% of its market capitalization to close the month at $1.56 a share, making for a company value of $338 million. Vivid is down 66% year-to-date. 'As we've all witnessed, economic and political volatility has impacted consumer sentiment, and this uncertainty can also impact how and when artists and rights holders go to market,' Vivid CEO Stanley Chia said on a May 6 earnings call. Due to the competitive landscape and consumer uncertainty, Vivid suspended its habit of providing forward earnings guidance to analysts with that call, adding to the bearish sentiment for Vivid that has yet to let up. By comparison, larger ticket seller Live Nation (LYV) hasn't been nearly as hard hit—its shares gained 4% in May. In a mid-May investor conference, the company emphasized that two-thirds of its growth comes from international markets, places where consumer spending power won't be hurt by Trump's tariffs. The Sportico Sports Stock Index is a basket of 40 stocks that rely on sports for a significant portion of future growth. The index includes sports teams and leagues such as Formula 1 (FWOBA, up 9%), regional sports network owners including Sphere Entertainment (SPHR, up 38%), recreation operators such as Vail Resorts (MTN, up 15%) and sports data and analytics providers like Genius Sports (GENI, down 11%). To be included in the index, stocks must be traded in the U.S. with sufficient daily volume and a market capitalization greater than $50 million. The index was launched in August 2020 at 1,000. It's up 38% since and 1% in 2025. Best of Most Expensive Sports Memorabilia and Collectibles in History The 100 Most Valuable Sports Teams in the World NFL Private Equity Ownership Rules: PE Can Now Own Stakes in Teams Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
4 days ago
- Business
- Fashion Network
FountainVest seeks $1.32 billion in Arc'teryx maker share sale
An Asian private equity firm is seeking to raise as much as $1.32 billion in a sale of about half its shares in Amer Sports Inc., as early investors in the maker of sporting goods including Arc'teryx clothing look to cash out. Affiliates of FountainVest Partners are offering 35 million shares of Amer for $37.20 to $37.73 each, according to terms of the deal seen by Bloomberg News. The buyout firm was part of a consortium that acquired Amer for $5.2 billion in a deal completed in 2019. Shares of Amer, which also makes Wilson tennis rackets and Salomon, fell 0.9% to $37.40 each in after-market trading on Wednesday. They have nearly tripled since the company's $1.6 billion initial public offering last year. FountainVest had 69.1 million Amer shares, or 12.5% of the company, prior to the sale, according to Bloomberg calculations. The deal would reduce its stake to about 6.2%, the calculations show. The firm is bound by a lock-up agreement preventing further sales of Amer stock for 60 days, according to the terms. The original consortium also included China's Anta Sports Products Ltd., billionaire Lululemon Athletica Inc. founder Chip Wilson and tech giant Tencent Holdings Ltd. Goldman Sachs Group Inc. and Bank of America Corp. are leading the deal, an earlier statement shows. The share sale is expected to price later on Wednesday.
Fashion Network
5 days ago
- Business
- Fashion Network
FountainVest seeks $1.32 billion in Arc'teryx maker share sale
An Asian private equity firm is seeking to raise as much as $1.32 billion in a sale of about half its shares in Amer Sports Inc., as early investors in the maker of sporting goods including Arc'teryx clothing look to cash out. Affiliates of FountainVest Partners are offering 35 million shares of Amer for $37.20 to $37.73 each, according to terms of the deal seen by Bloomberg News. The buyout firm was part of a consortium that acquired Amer for $5.2 billion in a deal completed in 2019. Shares of Amer, which also makes Wilson tennis rackets and Salomon, fell 0.9% to $37.40 each in after-market trading on Wednesday. They have nearly tripled since the company's $1.6 billion initial public offering last year. FountainVest had 69.1 million Amer shares, or 12.5% of the company, prior to the sale, according to Bloomberg calculations. The deal would reduce its stake to about 6.2%, the calculations show. The firm is bound by a lock-up agreement preventing further sales of Amer stock for 60 days, according to the terms. The original consortium also included China's Anta Sports Products Ltd., billionaire Lululemon Athletica Inc. founder Chip Wilson and tech giant Tencent Holdings Ltd. Goldman Sachs Group Inc. and Bank of America Corp. are leading the deal, an earlier statement shows. The share sale is expected to price later on Wednesday.
Fashion Network
5 days ago
- Business
- Fashion Network
FountainVest seeks $1.32 billion in Arc'teryx maker share sale
An Asian private equity firm is seeking to raise as much as $1.32 billion in a sale of about half its shares in Amer Sports Inc., as early investors in the maker of sporting goods including Arc'teryx clothing look to cash out. Affiliates of FountainVest Partners are offering 35 million shares of Amer for $37.20 to $37.73 each, according to terms of the deal seen by Bloomberg News. The buyout firm was part of a consortium that acquired Amer for $5.2 billion in a deal completed in 2019. Shares of Amer, which also makes Wilson tennis rackets and Salomon, fell 0.9% to $37.40 each in after-market trading on Wednesday. They have nearly tripled since the company's $1.6 billion initial public offering last year. FountainVest had 69.1 million Amer shares, or 12.5% of the company, prior to the sale, according to Bloomberg calculations. The deal would reduce its stake to about 6.2%, the calculations show. The firm is bound by a lock-up agreement preventing further sales of Amer stock for 60 days, according to the terms. The original consortium also included China's Anta Sports Products Ltd., billionaire Lululemon Athletica Inc. founder Chip Wilson and tech giant Tencent Holdings Ltd. Goldman Sachs Group Inc. and Bank of America Corp. are leading the deal, an earlier statement shows. The share sale is expected to price later on Wednesday.
CBC
23-05-2025
- Entertainment
- CBC
The art and the artist: Chip Wilson's new Kitsilano sign
People's reactions to the Vancouver billionaire's latest public art offering are another example of the city's complicated relationship with the Lululemon founder. Justin McElroy reports.
