Goldman Sachs and Bank of America served as the primary managers for the recent offering of AS. This strategic involvement marks a significant move in the investment landscape for the company.
AS Key Business Developments
Release Date: May 20, 2025
- Sales Growth: 23% reported growth, 26% ex-currency.
- Adjusted Operating Margin: Expanded by nearly 500 basis points to 15.8%.
- Adjusted Gross Margin: Increased 330 basis points to 58%.
- Adjusted Net Income: $148 million, up from $50 million in the prior year period.
- Adjusted Diluted EPS: $0.27 compared to $0.11 last year.
- Technical Apparel Revenue: Increased 28% to $664 million.
- Outdoor Performance Revenue: Increased 25% to $502 million.
- Ball & Racquet Revenue: Increased 12% to $306 million.
- Direct-to-Consumer Growth: 39% growth, led by Salomon footwear in Greater China and APAC.
- Regional Growth: Asia Pacific up 49%, China up 43%, EMEA up 12%, Americas up 12%.
- Net Debt: $515 million, down from $591 million at the end of Q4.
- Operating Cash Flow: $164 million generated in Q1 2025.
- Inventory Position: Up 15% year over year, below 23% sales growth.
- Full Year Revenue Growth Guidance: Raised from 13%-15% to 15%-17%.
- Adjusted Diluted EPS Guidance: Raised to $0.67 to $0.72 from $0.64 to $0.69.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Amer Sports Inc (AS, Financial) reported a strong start to 2025 with a 23% sales growth, or 26% excluding currency effects, and a significant expansion in adjusted operating margin by nearly 500 basis points.
- The company's flagship brand, Arc'teryx, continues to show robust growth across all regions, channels, and categories, particularly in footwear and women's apparel.
- Salomon sneakers are experiencing accelerating global momentum, with sales surpassing USD 1 billion in 2024, and the brand is gaining traction in both the US and Europe.
- The Ball & Racquet segment saw a 12% growth, driven by strength in sportswear, racquet sports, and golf, with Wilson Tennis 360 continuing to resonate well with consumers.
- Amer Sports Inc (AS) has a strong presence in Greater China, with significant growth in the premium sports and outdoor market, supported by a scalable operating platform and a deep understanding of the local market.
Negative Points
- Despite strong performance, there is macro uncertainty related to US tariffs, which could impact future financial results.
- The Ball & Racquet segment, while showing growth, is expected to grow at a slower pace in the long term, with projections of low to mid-single digits.
- The company is facing challenges in the Nordic or cross-country market, although they have managed to move a significant amount of inventory at reasonable discounts.
- There is a potential impact from tariffs, with a 100-basis-point annualized drag if higher tariffs are reinstated, although mitigation strategies are in place.
- The second half of the year is expected to show slower growth compared to the first half, reflecting a cautious approach due to ongoing macroeconomic uncertainties.
