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AMER SPORTS INC

AMER SPORTS INC (AS) Q1 2026 Earnings Call Transcript

Bullish Leisure 22.82B Finland
Next Earnings
2026-02-24

Amer Sports, Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories in Europe, the Middle East, Africa, the Americas, Mainland China, Hong Kong, Macau, Taiwan, and the Asia Pacific. It operates through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports. The Technical Apparel segment offers outdoor apparel, footwear, and accessories, which includes climbing gear. The Outdoor Performance segment provides hiking and running footwear, functional apparel, skiing and snowboarding gear, and lifestyle footwear products. The Ball & Racquet Sports segment offers sports equipment for tennis, baseball, American football, basketball, golf, and various other professional and recreational sports, as well as functional athletic apparel. This segment provides custom-fitting protective gear and apparel for baseball, softball, football, and lacrosse; and pitching machines. The company sells its products under the Arc'teryx, PeakPerformance, Salomon, Atomic, Armada, Wilson, Louisville Slugger, DeMarini, EvoShield, and Atec brands. It distributes its products through retail stores, general sporting goods retailers, specialty stores, independently operated partner stores, and distributors, as well as 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.

Amer Sports posted 2025 revenue of $6.6B up 27% with 12.8% adjusted OPM, while guiding 2026 revenue growth of 16–18% and adjusted EPS of $1.10–$1.15, supported by Salomon and Arc’teryx momentum and strategic investments.

⭐ Key Highlights

2025 growth and profitability
Amer Sports delivered 27% revenue growth to $6.6B in 2025 with 170 bps adjusted operating margin expansion to 12.8%.
Arc'teryx and Salomon momentum
Arc'teryx achieved 34% technical apparel growth in Q4 with 25.9% adjusted operating margin; Salomon surpassed $2B in annual sales and drove the outdoor performance breakout, supported by a rapid store expansion.
Salomon investments and margin mix
Q4 investments behind Salomon pushed Q4 segment margins down (outdoor performance margin down due to SG&A investments) but are intended to fuel long-term growth.
Robust cash generation and balance sheet
FY2025 operating cash flow reached $730M, net debt remained modest at $291M (0.3x net leverage), and a note redemption of $80M was executed post-year-end.
Strategic leadership and structure
Carrie named President/CEO of Wilson; Arc'teryx appointed new CBO and EMEA head; Salomon appointed Creative Director to accelerate brand growth.
Guidance highlights
2026 guidance calls for 16–18% group revenue growth, ~59% gross margin, 13.1–13.3% adjusted operating margin, and EPS of $1.10–$1.15; Q1 2026 revenue guidance of 22–24% with 59% gross margin and 14.0–14.5% OPM.

✔Positive Signals

  • 27% 2025 revenue growth to $6.6B and 12.8% adjusted OPM
  • Arc’teryx 34% Q4 growth in technical apparel with strong margin expansion
  • Salomon surpassing $2B in annual sales and global momentum (Europe/Asia/NA)
  • Strong free cash flow generation (FY2025 $730M OCF) and strong balance sheet (0.3x net leverage)
  • Management reiterates disciplined long-duration investments behind high-growth brands and potential upside to guidance

✖Negative Signals

  • Q4 adjusted operating margin declined 110 bps due to accelerated Salomon SG&A investments
  • Outlook assumes tariff stability; potential tariff headwinds remain a risk
  • Q1 2026 outdoor performance margin expected to revert to only modest YoY expansion amid investing cycle
  • Higher corporate costs (about $50M incremental in 2026 due to reallocation) pressuring near-term profitability
  • Inventory growth elevated at 33% YoY, though anticipated to normalize in 2026

📊Financial Results

  • Full-year 2025 revenue: $6.6B, +27% year over year
  • Full-year 2025 adjusted gross margin: 57.8%, +140 bps
  • Full-year 2025 adjusted SG&A as % of revenue: 45.5%, up 220 bps due to Salomon investments
  • Full-year 2025 adjusted operating margin: 12.5%, down 110 bps from 13.6% prior year
  • Q4 2025 adjusted net income: $176M; adjusted EPS: $0.31 vs $0.17 prior year

🔮Future Guidance

  • 2026 full-year revenue growth guidance: 16–18% (including ~200 bps FX benefit)
  • 2026 full-year gross margin guidance: ~59%
  • 2026 full-year adjusted operating margin guidance: 13.1–13.3% (toward the low end of a long-run 30–50 bps annual expansion target due to Salomon investments)
  • Capex guidance: ~$400M in 2026 (vs. $310M in 2025)
  • Q1 2026 guidance: revenue +22% to +24%, gross margin ~59%, OPM 14.0% to 14.5%, EPS $0.28–$0.30

💡Interesting Insights

  • Epicenter strategy for Salomon (Paris, Milan, New York, LA) is designed to accelerate brand awareness and distribution in high-density markets, with a Paris hub and flagship stores signaling a systemic global push.

Detailed Analysis

AI-generated summary of AMER SPORTS INC earnings call transcript.

Amer Sports finished 2025 with broad-based growth across all segments led by Arc’teryx and Salomon, delivering 27% revenue growth to $6.6B and 170 bps of adjusted operating margin expansion to 12.8%. Q4 showed strong topline momentum (28% reported growth) driven by technical apparel and outdoor performance, though margins compressed 110 bps due to accelerated SG&A investments behind Salomon’s growth. The company highlighted significant brand momentum (Salomon surpassing $2B in sales; Arc’teryx delivering strong margin expansion), a rapid store expansion strategy (Arc’teryx and Salomon openings globally, including a Paris hub and NYC Alpha store), and a disciplined capital approach (730M cash from operations, $80M debt redemption). For 2026, Amer Sports guides 16–18% revenue growth with 59% gross margin and 13.1–13.3% adjusted operating margin, driven by continued investments in Arc’teryx, Salomon, and Wilson 360, while maintaining leverage discipline and a robust cash position. The management emphasized a portfolio-driven approach, global epicenter strategy for Salomon, and selective wholesale expansion in North America and Europe, with potential upside if demand materializes above the current plan.

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