Technical apparel segment boosts Amer Sports Q1 revenues

For the first quarter, Amer Sports revenue increased 13 percent to 1.2 billion dollars led by a 44 percent increase in the technical apparel segment. On a constant currency basis, revenue increased 14 percent.

Commenting on the trading results, Amer Sports CEO James Zheng said: “Our transformation to a brand-direct business model four years ago continues to fuel profitable growth today, and our high-performance technical products are resonating with consumers globally. We are gaining share in the premium sports and outdoor market and are well positioned to deliver another great year in 2024.”

Highlights of Amer Sports’ Q1 results

The company said in a release that technical apparel growth was driven by Arc’teryx, which is generating double-digit new store growth while also delivering exceptional omni-comp growth against difficult comparisons from the first quarter of 2023. The brand is generating broad-based growth across regions, led by Asia Pacific and the Americas, followed by Greater China and Europe, the Middle East and Africa (EMEA).

DTC sales expanded 41 percent with double-digit growth across all regions and wholesale revenues decreased 1 percent year over year. Regional growth was led by Greater China which increased 51 percent and the Asia Pacific region rose by 34 percent. EMEA grew 1 percent and revenues were flat in the Americas, where growth in the technical apparel segment was offset by declines in the ball & racquet and outdoor performance segments.

On a reported basis, gross margin was 54 percent, operating profit for the quarter was 109 million dollars, net income declined to 7 million dollars and diluted earnings per share were 1 cents for the first quarter 2024.

Adjusted gross profit margin rose 110 basis points to 54.3 percent, while adjusted net income was 39 million dollars or 8 cents per share on a fully diluted basis.

Amer Sports expects mid-teens revenue growth for 2024

Updating guidance for the year ending December 31, 2024, Amer Sports said that the company expects reported revenue growth in the mid-teens percentage, gross margin of approximately 54 percent, operating margin in the range of 10.5 percent and 11 percent and fully diluted EPS toward the high end of the previous guidance range of 30 cents to 40 cents.

The company forecasts technical apparel segment to achieve 25 percent revenue growth with operating margin slightly above 20 percent, outdoor performance category growth in mid-to-high-single-digit range with operating margin of high-single digit percentage and ball & racquet segment growth of low-to-mid single-digit and low-to-mid single-digit segment operating margin.

For the second quarter, reported revenue growth is expected to be approximately 10 percent, gross margin of approximately 54 percent and fully diluted EPS to be in the range of negative 4 cents to negative 8 cents.