Amer Sports raises forecast on strong Q3 growth

For the third quarter, Amer Sports reported a revenue increase to 1,354 million dollars, up 17 percent on both a reported and constant currency basis.

“The third quarter was very strong for Amer Sports Group across all brands and geographies. We are executing against our largest growth opportunities in Arc'teryx and Salomon footwear, while our market-leading ball & racquet franchise experienced a growth acceleration,” said Amer Sports CEO James Zheng in a release.

Highlights of Amer Sports Q3 results

By segment, technical apparel increased by 34 percent to 520 million dollars, or increased 33 percent on a constant currency basis, reflecting an omni-comp growth of 20 percent.

The company’s outdoor performance increased 8 percent to 534 million dollars, or 7 percent on a constant currency basis, while ball & racquet sports increased to 300 million dollars, representing 11 percent growth on both a reported and constant currency basis.

Gross margin increased 420 basis points to 55.2 percent and adjusted gross margin increased 410 basis points to 55.5 percent. Operating profit for the quarter increased 69 percent to 177 million dollars; while adjusted operating profit increased 46 percent to 195 million dollars.

Operating margin for the quarter increased 400 basis points to 13.1 percent and adjusted operating margin increased 280 basis points to 14.4 percent. Net income increased 257 percent to 56 million dollars, or 11 cents diluted earnings per share; while adjusted net income increased 651 percent to 71 million dollars, or 14 cents diluted earnings per share.

Amer Sports appoints two senior executives

Amer Sports also announced two leadership changes to the company’s executive structure.

The company said, effective January 1, 2025, Guillaume Meyzenq, currently chief product officer for Salomon, has been appointed president and CEO for Salomon.

The company added that Michael Hauge Sørensen, chief operating officer for Amer Sports, has decided to step down from his current position and will return to his former role as advisor to the board of directors of Amer Sports.

Amer Sports is updated full year guidance

Commenting on the outlook, Page said: “Very strong growth from our highest-margin Arc'teryx franchise combined with improving trends in both ball & racquet and winter sports equipment give us the confidence to raise our full-year sales and earnings guidance.”

The company forecasts reported revenue growth between 16 to 17 percent for the full year, gross margin to be in the range of 55.3 to 55.5 percent, operating margin to be towards the high-end of 10.5 to 11 percent range and fully diluted EPS to be between 43 cents to 45 cents.

The company expects technical apparel segment revenue growth of approximately 34 percent, outdoor performance revenue growth of approximately 8 percent and ball & racquet category revenue growth of approximately 4 percent.

“As we begin to look beyond this year, we are also confident in our initial 2025 outlook and expect to deliver results consistent with our long-term financial algorithm of low-double-digit to mid-teens annual revenue growth and 30 to 70 bps of annual adjusted operating margin expansion driven by gross margin expansion,” Page added.