(Yicai) Sept. 25 -- Shares of Finnish sporting goods firm Amer Sports have fallen for three straight trading days as the environmental uproar over a promotional fireworks display hosted in the Himalayas last week by its subsidiary Arc’teryx spills over into the capital market.

Amer Sports [NYSE: AS], in which a consortium led by China’s Anta Sports Products has a controlling stake, sank 5.8 percent on Sept. 22, 2.8 percent on Sept. 23 and 0.5 percent yesterday to close at USD34.14 per share.

The fireworks show staged in the foothills of the Himalayas in China’s Xizang Autonomous Region on Sept. 19 sparked online outrage for risking damage to a fragile ecosystem and contradicting Arc’teryx’s conservation image, with some customers vowing to boycott the brand.

The Vancouver-based company issued an apology on Sept. 21, claiming it used "biodegradable" fireworks and saying the stunt was “out of line with Arc’teryx’s values.”

Citigroup lowered its share price target for Amer Sports to USD42 from USD50 the following day. In a research note, the US financial services firm said the backlash is mainly concentrated on the outdoor apparel brand Arc’teryx, with Amer’s other brands appearing to be largely unscathed.

Amer Sports’ stock has more than doubled in value since the Helsinki-based company went public in February last year at USD13 per share.

FountainVest Partners, which was part of the buyout consortium, has pared its stake by around 35 million shares, cashing out about USD1.3 billion. The Hong Kong-based private equity firm still retains a 6.2 percent holding.

Chip Wilson, who founded Canadian sports apparel retailer Lululemon and was also part of the consortium, offloaded over 4 million shares in August for around USD159.7 million. He still owns about 18 percent of Amer Sports.

Arc’teryx has surged in popularity among outdoor enthusiasts in recent years, but its prices have climbed just as fast, according to long-time customers. Since 2022, the brand has raised prices several times, said Wang Jiaqi, a veteran outdoor goods buyer who often purchased the brand’s products before its takeover by Jinjiang-based Anta.

In Japan alone, Arc’teryx hiked prices twice in 2023, in August and December, with the price of some goods going up by as much as 25 percent in the final month of that year.

This sparked criticism from loyal customers who complained online, saying that Arc’teryx is trying to position itself alongside luxury labels such as Louis Vuitton and Chanel, but that the quality has not improved despite higher prices.

And the complaints are piling up. A search on Heimaotousu, a consumer services platform of Chinese tech giant Sina, found over 3,000 results related to Arc’teryx, many of which were about quality issues, such as shoes coming unglued, jackets bulging and pilling, and logos peeling off clothing.

Industry insiders said this points to issues and room for improvement in Arc’teryx’s after-sales service, craftsmanship and quality control. With higher prices, consumer scrutiny becomes more severe.

Editor: Kim Taylor