Amer Sports Shines in Earnings Call with Strong Growth

Amer Sports, Inc. ((AS)) has held its Q1 earnings call. Read on for the main highlights of the call.

Amer Sports, Inc. recently held its earnings call, showcasing a robust positive sentiment driven by significant sales growth, margin expansion, and strong brand performance. The company excelled particularly in the Technical Apparel and Outdoor Performance segments, despite facing macroeconomic challenges such as U.S. tariffs and difficulties in specific market segments like Nordic equipment.

Strong Sales and Margin Growth

Amer Sports reported an impressive 23% sales growth, or 26% when excluding currency effects, alongside an adjusted operating margin expansion of nearly 500 basis points. This growth underscores the company’s strategic focus on enhancing profitability and expanding its market reach.

Technical Apparel and Outdoor Performance Segment Success

The company’s Technical Apparel and Outdoor Performance segments were standout performers, with Arc’teryx achieving a 28% increase in revenues and Salomon experiencing accelerating momentum globally. This success highlights the strong demand for high-performance sportswear and outdoor products.

Arc’teryx Direct-to-Consumer Channel Growth

Arc’teryx saw a 19% increase in omni-channel sales in Q1, driven by robust performance in both physical stores and online platforms. This growth reflects the brand’s effective direct-to-consumer strategy and its ability to engage customers across multiple channels.

Salomon Sneakers’ Global Impact

Salomon sneakers have surpassed US$1 billion in sales in 2024, tapping into the expansive US$180 billion global sneaker market. This milestone demonstrates the brand’s growing influence and potential for further expansion in the footwear industry.

Ball & Racquet Growth

The Ball & Racquet segment experienced a 12% growth, fueled by strong demand in sportswear, racquet sports, and golf. This growth indicates a rising interest in these sports and Amer Sports’ ability to capitalize on this trend.

Strong Performance in Greater China

Amer Sports achieved remarkable growth in the Asia Pacific region, with a 49% increase, and a 43% growth in Greater China in Q1. This performance was driven by the premium sports and outdoor market, showcasing the company’s successful penetration into these lucrative markets.

Macro Uncertainty Related to U.S. Tariffs

Despite the strong performance, Amer Sports faces macroeconomic uncertainty due to U.S. tariffs, which could pose challenges moving forward. The company remains vigilant in managing these potential impacts.

Challenges in Winter Sports Equipment

The Nordic or cross-country market continues to face challenges, although Amer Sports managed to move significant inventory at reasonable discounts. This indicates ongoing efforts to address market difficulties and optimize inventory levels.

Forward-Looking Guidance

Looking ahead, Amer Sports has raised its revenue growth expectations for the full year 2025 from 13%-15% to 15%-17%, despite anticipating a 150 basis point drag from unfavorable FX impacts. The adjusted gross margin is expected to remain between 56.5% and 57%, with an adjusted operating margin of 11.5% to 12%. Segment-specific guidance has also been adjusted upwards, reflecting confidence in continued brand momentum, particularly for Arc’teryx and Salomon.

In summary, Amer Sports, Inc.’s latest earnings call highlighted a strong positive sentiment with impressive sales growth and margin expansion, particularly in the Technical Apparel and Outdoor Performance segments. Despite facing macroeconomic challenges, the company remains optimistic about its future growth prospects, supported by strong brand momentum and strategic market positioning.