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Amer Sports, Inc. (AS)
:AS
US Market

Amer Sports, Inc. (AS) AI Stock Analysis

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AS

Amer Sports, Inc.

(NYSE:AS)

Rating:58Neutral
Price Target:
$38.00
▲(0.88%Upside)
Amer Sports has demonstrated strong revenue growth and improved financial health by reducing debt. However, profitability challenges with thin net margins and cash flow inconsistencies remain significant risks. The stock shows strong technical momentum, but high valuation metrics and overbought technical indicators suggest caution. Positive outlook from the earnings call supports the score, but macroeconomic risks require careful consideration.
Positive Factors
Earnings Guidance
AS raised its FY25 EPS guidance, with adjusted EPS now expected higher than prior estimates and consensus.
Revenue Growth
Revenue grew 23%, well above consensus at 16%, driven by strong sales momentum across Technical Apparel and Outdoor Performance.
Negative Factors
Brand Consistency
The sustainability of the Salomon brand's momentum is questionable, raising concerns about consistency across segments versus guidance.
Market Concerns
Concerns exist regarding the potential deterioration of Chinese consumer markets, especially following a recent slowdown in retail sales, which is crucial for Amer Sports' growth and margin story.

Amer Sports, Inc. (AS) vs. SPDR S&P 500 ETF (SPY)

Amer Sports, Inc. Business Overview & Revenue Model

Company DescriptionAmer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, China, and the Asia Pacific. The company operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories under the Arc'teryx and Peak Performance brands. The Outdoor Performance segment provides outdoor apparel, footwear, accessories, and winter sports equipment under the Salomon, Atomic, Armada, and ENVE brands. The Ball & Racquet Sports segment offers sports equipment, apparel, and accessories under the Wilson, DeMarini, Louisville Slugger, EvoShield, and ATEC brands. The company also provides climbing gears, hiking and running footwear, skiing and snowboarding gears, functional athletic apparel, and lifestyle footwear, as well as sporting equipment for tennis, baseball, American football, basketball, golf, and various other professional and recreational sports. It sells its products through its retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as its e-commerce websites, and retailer-owned and third-party e-commerce websites. The company was formerly known as Amer Sports Management Holding (Cayman) Limited and changed its name to Amer Sports, Inc. in August 2023. Amer Sports, Inc. was founded in 1950 and is based in Helsinki, Finland.
How the Company Makes MoneyAmer Sports, Inc. generates revenue primarily through the sale of its branded sports equipment, apparel, and footwear. The company sells its products through multiple channels, including wholesale to retail partners, direct-to-consumer via e-commerce platforms, and brick-and-mortar stores. Key revenue streams include the outdoor segment, which features brands like Salomon and Arc'teryx, the ball sports segment led by Wilson, and the fitness segment including products from Precor. Significant partnerships, such as endorsements and collaborations with athletes and sports teams, also bolster its market presence and drive sales. Additionally, Amer Sports invests in R&D to innovate and improve product offerings, thus enhancing its competitive edge in the sporting goods industry.

Amer Sports, Inc. Earnings Call Summary

Earnings Call Date:May 20, 2025
(Q1-2025)
|
% Change Since: 20.01%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Positive
The earnings call depicted a strong positive sentiment with significant sales growth, margin expansion, and strong brand performance, particularly in Technical Apparel and Outdoor Performance. The challenges were mainly related to macroeconomic factors like U.S. tariffs and specific market segments like Nordic equipment.
Q1-2025 Updates
Positive Updates
Strong Sales and Margin Growth
Amer Sports delivered 23% sales growth or 26% ex-currency, with an adjusted operating margin expansion of nearly 500 basis points.
Technical Apparel and Outdoor Performance Segment Success
The performance was led by strong growth and profitability in Technical Apparel and Outdoor Performance, with Arc'teryx delivering a 28% increase in revenues and Salomon experiencing accelerating momentum globally.
Arc'teryx Direct-to-Consumer Channel Growth
Arc'teryx achieved a plus 19% omni-comp in Q1, driven by strong performance in both stores and online.
Salomon Sneakers' Global Impact
Salomon sneakers surpassed US$1 billion in sales in 2024, with significant growth potential in the US$180 billion global sneaker market.
Ball & Racquet Growth
The Ball & Racquet segment experienced 12% growth, driven by strength in sportswear, racquet sports, and golf.
Strong Performance in Greater China
Amer Sports saw 49% growth in Asia Pacific and 43% growth in Greater China in Q1, driven by the premium sports and outdoor market.
Negative Updates
Macro Uncertainty Related to U.S. Tariffs
Despite strong performance, there is macro uncertainty related to U.S. tariffs, which poses potential challenges.
Challenges in Winter Sports Equipment
The Nordic or cross country market remains more challenged, although significant inventory was moved at reasonable discounts.
Company Guidance
During the Amer Sports First Quarter Fiscal 2025 Earnings Conference Call, the management team provided guidance for the second quarter and full fiscal year. For the full year 2025, they raised their revenue growth expectations from 13%-15% to 15%-17%, anticipating a 150 basis point drag from unfavorable FX impact. The adjusted gross margin is expected to remain between 56.5% and 57%, with an adjusted operating margin of 11.5% to 12%. They also provided segment-specific guidance: Technical Apparel revenue growth was increased from approximately 20% to 20%-22%, Outdoor Performance from low double digits to mid-teens, and Ball & Racquet from low to mid-single digits to mid-single digits. The adjusted diluted EPS was raised to $0.67-$0.72 from $0.64-$0.69. For the second quarter, they expect reported revenue growth of 16%-18%, an adjusted gross margin of 57%-58%, and an adjusted operating profit between 3% and 4%, with an adjusted diluted EPS of $0.00 to $0.02. The management cited strong brand momentum, particularly in Arc'teryx and Salomon, and confidence in their ability to manage tariff impacts as key drivers for this optimistic outlook.

Amer Sports, Inc. Financial Statement Overview

Summary
Amer Sports, Inc. showed strong revenue growth and improved gross profit margins but continues to face challenges with thin net profit margins and inconsistent cash flow. The reduction in debt levels is a positive sign, but the debt-to-equity ratio remains a concern.
Income Statement
75
Positive
Amer Sports, Inc. showed strong revenue growth, increasing from $2.14 billion in 2020 to $5.18 billion in 2024. Gross profit margin improved, reflecting efficient cost management. However, net profit margins are thin, with a net income of $72.6 million in 2024, indicating potential profitability issues. Despite positive EBIT and EBITDA margins, the net profit margin remains a concern.
Balance Sheet
50
Neutral
The company has substantially reduced its debt levels from $6.99 billion in 2020 to $1.48 billion in 2024, improving its financial stability. However, the debt-to-equity ratio is still a concern, and stockholders' equity was negative until 2023, pointing to past financial difficulties. The current equity ratio is strong, suggesting improved financial health.
Cash Flow
40
Negative
Free cash flow has been inconsistent, with zero reported in 2024 despite previous positive figures. Operating cash flow was positive in earlier years but is currently at zero, indicating potential issues in cash generation from operations. The lack of free cash flow growth and cash flow ratios highlights potential cash management challenges.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
5.18B4.37B3.38B2.59B2.15B
Gross Profit
2.87B2.28B1.68B1.27B1.01B
EBIT
470.80M302.50M229.79M151.44M121.93M
EBITDA
665.80M521.10M414.66M381.60M342.70M
Net Income Common Stockholders
72.60M-208.60M-235.21M-204.99M-208.07M
Balance SheetCash, Cash Equivalents and Short-Term Investments
345.40M483.40M376.67M498.33M389.50M
Total Assets
8.34B8.37B7.40B6.99B8.62B
Total Debt
1.48B6.66B5.84B5.54B6.99B
Net Debt
1.14B6.18B5.47B5.04B6.60B
Total Liabilities
3.33B8.53B7.47B6.96B8.78B
Stockholders Equity
5.00B-160.20M-69.24M33.42M-152.90M
Cash FlowFree Cash Flow
136.70M47.20M-201.15M143.06M167.64M
Operating Cash Flow
424.70M199.00M-87.25M226.74M261.32M
Investing Cash Flow
-268.30M-154.80M-112.85M249.92M-93.60M
Financing Cash Flow
-266.00M35.00M77.17M-312.78M-145.00M

Amer Sports, Inc. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price37.67
Price Trends
50DMA
28.97
Positive
100DMA
29.30
Positive
200DMA
24.99
Positive
Market Momentum
MACD
2.54
Positive
RSI
72.47
Negative
STOCH
68.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AS, the sentiment is Positive. The current price of 37.67 is above the 20-day moving average (MA) of 35.81, above the 50-day MA of 28.97, and above the 200-day MA of 24.99, indicating a bullish trend. The MACD of 2.54 indicates Positive momentum. The RSI at 72.47 is Negative, neither overbought nor oversold. The STOCH value of 68.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AS.

Amer Sports, Inc. Risk Analysis

Amer Sports, Inc. disclosed 70 risk factors in its most recent earnings report. Amer Sports, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Summary of Risk Factors Q4, 2024

Amer Sports, Inc. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$4.18B19.7427.15%1.24%2.07%24.87%
76
Outperform
$2.69B15.6725.01%8.38%3.69%
60
Neutral
$297.31M-9.70%4.61%-7.28%-924.86%
ASAS
58
Neutral
$20.96B101.784.38%21.21%
57
Neutral
$4.90B18.99-16.90%5.26%13.61%-24.47%
54
Neutral
$1.41B-46.00%-1.74%-2020.38%
25
Underperform
$12.66M-124.69%-45.46%96.89%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AS
Amer Sports, Inc.
37.84
23.43
162.60%
MODG
Topgolf Callaway Brands
7.70
-8.08
-51.20%
GOLF
Acushnet Holdings
73.19
9.14
14.27%
JOUT
Johnson Outdoors
29.08
-5.09
-14.90%
YETI
Yeti Holdings
32.48
-10.24
-23.97%
YYAI
Connexa Sports Technologies
0.94
-15.13
-94.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.