Arc’teryx leads the way in Amer Sports’ Q4 results

Amer Sports, the parent company of Salomon, Arc’teryx and Wilson, has published its financials for the fourth quarter of 2023, as well as for the full fiscal year, with its technical apparel segment leading the charge among its wide-scoping portfolio.

For the fourth quarter, revenue increased 10 percent to 1.315 billion dollars, representing an anticipated deceleration from the quarter prior due to “supply chain related sales shifts”. Greater China led the way in terms of revenue, growing 45 percent. This was followed by the APAC region, which grew 22 percent.

Gross margin for the period came to 52 percent, compared to 50.2 percent in the same quarter last year, while operating profit was 60 million dollars, up from its prior 58 million dollars.

The group’s adjusted profit margin rose 170 basis points to 52.5 percent and adjusted net loss came to 41 million dollars, narrowing down from 46 million dollars in the prior year period.

Amer Sports credited its technical apparel segment for much of the growth this period, with the division bringing in a revenue increase of 26 percent year-over-year, beating out its outdoor performance and ball & racquet categories.

Arc’teryx was particularly strong, experiencing strong brand momentum across all regions, leading the company to fund higher investments and operating expenses into the retailer to support further growth.

For the full fiscal year 2023, Amer Sports reported a revenue increase of 23 percent to 4.368 billion dollars, while its gross margin grew from 49.7 percent to 52.1 percent. The group’s adjusted gross profit margin increased 240 basis points to 52.5 percent YoY, driven by Arc’teryx, which it said was its “highest gross margin business”.

In regards to the outlook, Amer CFO, Andrew Page, said: “Strengthening our balance sheet and deleveraging the business will remain a key focus while balancing investments in key growth drivers.

“We are off to a solid start in 2024 as we continue to enjoy benefits from our business mix shifting toward our high-margin Arc’teryx brand.”

For the first quarter, Amer is forecasting a revenue growth between 6 and 8 percent, with an adjusted gross margin of 53.5 percent.

For the full year 2024, the company is expecting revenue growth in the mid-teens range, and an adjusted gross margin between 53.5 and 54 percent.