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Amer Sports, Inc. Stock Price: Quote, Forecast, Splits & News (AS)

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Company Profile

New

Amer Sports, Inc. Price & Performance (AS)

Stock Performance

Updated Mar 27, 8:00 PM UTC

AS:NYSE

$27.47USD

1.82% · $0.51

Open

$27.78

High

$28.02

Low

$27.41

Market Cap

$15.21B

P/E Ratio

196.2

Volume

1.86M

Year High

$34.00

Year Low

$10.11

News & Market Insights

EntryPoint Capital Expands Amer Sports Investment
Mar 26, 2025
EntryPoint Capital LLC has increased its stake in Amer Sports, Inc., investing $556,000. Amer Sports shares opened at $29.35 on Tuesday, reflecting a 1.6% uptick. The company's market cap now stands at $16.26 billion. Analysts expect the firm to post a $0.46 EPS for the year.12
Amer Sports Faces Mixed Trading Signals
Mar 20, 2025
Amer Sports stock has seen a 13.95% rise since March 10, driven by short-term buy signals. However, long-term sell signals persist, with analysts forecasting a potential 4.65% drop over the next three months. The stock closed at $29.17 on March 20, with medium risk due to daily price volatility.23
Annual Report Highlights Amer Sports' Transparency
Mar 26, 2025
Amer Sports has filed its Annual Report on Form 20-F for fiscal 2024, showcasing financial transparency. The report includes audited financial statements and insights into the company's performance. However, it lacks details on upcoming strategies or new initiatives, leaving stakeholders seeking more clarity.45

What's Happening

Earnings

Report Date

Feb 25, 2025

Reported Revenue

1.6B

Avg 1d Change

6.21%

Report Period

Q4 2024

Reported EPS

0.17

Implied Move 1d

12.11%

Transcript

13m 8s

And are subject to certain risks and uncertainties that could cause actual results to differ materially. Please see the Safe Harbor statements in our earnings release and SEC filings. We will also discuss certain non IFRS financial measures. Please refer to our earnings release for important information regarding such non IFRS financial measures, including reconciliations to the most comparable IFRS financial measures. We'll begin with prepared remarks from our CEO, James Zhang and CFO, Andrew Page followed by a Q and A session until approximately 9AM Eastern. James will cover key operational and brand highlights then Andrew will provide a financial review at both the group and segment level, and also walk through our guidance for the first quarter and full year 2025. Our Terex CEO, Stuart Hazleton, will join for the Q and A session. With that, I'll turn the call over to James Amer. Thanks, Olima. Fourth quarter was a very strong finish to a remarkable year for Amer Sports. And we continue to enjoy strong momentum across all brands and geographies. Led by Akterix, our unique portfolio of BBM technical brands continues to create wide space and take market share and still has significant room for growth.

14m 27s

In the fourth quarter, Amyr Sports Group delivered sales, adjusted margin and EPS above expectations. We generated 23% sales growth and more than 300 base points of adjusted operating margin expansion. Led by strong growth and profitability in both the Technical Apparel and Outdoor Performance segments. For the year, we generated 18% revenue growth to $5,200,000,000 and 130 basis points of adjusted operating margin expansion to 11.1%. Both new records for the company. In Q4, all three of our big brands Solomon and Wesson for accelerating momentum Originally, Great China and APAC continue to deliver strong growth Well, both e mail and the North America accelerate, Looking forward, we believe Amersports is very uniquely positioned the company within the global sports and outdoor space. And several factors give me confidence for 2025 and beyond. First, we own and operate a unique portfolio of premium outdoor and sports brands. Each one is fueled by technical innovation and is positioned at the pinnacle of its segment. Our brands have high conversion and satisfaction but are still small players Second, our TELUS is a breakout growth with great growth and profitability for the outdoor industry driven by its [indiscernible] The direct to consumer model and a unique competitive position.

16m 21s

The brand is still very underpenetrated globally with a tremendous long term growth path ahead. Third, we believe that Salomon sneakers have a unique performance position and design within the global sneaker market. But still very low market share and the growth potential ahead. Especially at this time when consumers are open to trying new sneak brands. Fourth, Wirtan and our winter sports equipment brands have authentic heritage premium position high performance products and the leading market positions These high market share franchise will deliver lower long term growth in their core equipment business but they still have large soft goods potential. Especially the Werson's TENIS three sixty. And the fifth we believe we have a very strong differentiated platform in Great China. Where we continue to deliver best in class performance with strong momentum across all suite brands. Before I turn it over to Andrew, allow me to briefly recap key highlights from our three segments. Starting with Technical Apparel, which is led by our fastest growing and the largest brand, Akerx. Akerics achieved over $2,000,000,000 of sales in 2024. And delivered another great results in Q4 with strong growth of channels and categories. Especially footwear and the women's.

18m 5s

Which grow faster than the brand overall We were encouraged to see the brand momentum in technical which generated strong 29% omni count in Q4. Our differentiated stores continue to be at the heart of Terrace growth strategy. And are critical to how we engage with consumers and the community. [indiscernible] net eight new retail stores in Q4. Bringing the total net new store opening in 2024 to 10 new locations increased six openings in China, an Alpha store in Japan and a new store in Southlake City. Our Teric store expansion strategy includes a mix of ranging from multilayer large scale alpha flagship stores to small format mountain town stores. For 2025, we plan to keep a similar opening pace with 25 to 30 net new stores This includes a similar level of growth brand store openings as 2024 and closing certain outlets and other suboptimal locations. In Q4, we opened a four level Alpha store in Shinjuku Tokyo which is located in the heart of the city with an estimate of 3,500,000 people working by daily. The store features the full range of our caret and valance, and our first ever beta launch in the country. Offering unique concierge service and the top level has a reverse service center.

19m 56s

Our platform for repair trading and upcycle gear In New York City, our so called Alpha store continues to exceed expectations since its opening in September. Notably guests are responding very well to the largest Akerics hourwear offering in the city as well as the store's unique Reebur service center. Reaver continues to be an important strategy for Akeris, driving strong guest engagement and elevating their in store experience. Globally, in 2024, we opened 11 new river service centers. And in January, we opened our first European mountain pawnshop in Germany, France and we are very excited by initial results there. Chamlin is one of the largest mountain resorts in the Alps and attracts a range of visitors from all over the world. From mountain enthusiasts to hardcore mountain assets, This store comes after thirteen years of engaging with European mountain athletes at our Appin Academy in Chambliss every summer. Which allows the brand to build a significant recognition and appreciation with local and global consumers. Shifting to product, footwear continued to be a carrier's fast growing category in Q4. As consumers continue to respond strongly to what we believe is the best line of technical performance footwear designed for mountains.

21m 40s

Beyond the breakout success of the track, we are excited that our SIR and RUNNING to won Best Trailerships Awards from Runner's World UK and the Women's Running. Looking forward, we believe our carriers has an even more exciting pipeline for SHUELROUNDS in twenty twenty five. We believe that we will become a sizable and profitable growth avenue for acquiring both in own retail and certain brand relevant wholesale accounts. We mix also continued to perform extremely well in Q4, with double digit growth across all regions. Outpacing men's and the brand growth in total. Softer trends Feminine, and neutral colors were popular with female consumers Ski and snow products were especially strong with women, as we are seeing significantly improving brand awareness and affinity with women in both The U. S. And Europe. Innovation is at the heart of our growth DNA. And it ranged from cutting edge products such as our new electric Avalanche airbag and award winning Mogo hiking pants to small evolutions of existing product lines such as our installed version of the crack which was the hit this winter season. This year, we also further strengthened the leadership team at Akerx, We announced the Map Bolt as our new Chief Merchandising Officer.

23m 21s

An industry veteran with nearly two decades at NIKE. We are also building an all star team to develop our valance which today accounts for 5% of Clarix revenues. But we think has significant room for growth. This includes our new ValenceGM, Marissa Padini, [indiscernible] Vince Stubbenen who joined from Lululemon and Siri, Privacy. We believe the addition of Marissa and Ben to our valence team marks a pivotal moment in our journey to broaden the reach of our unique valence offering. Lastly, in technical apparel, we recently announced that Stefanos Second will join April 1 as President of the Peak Performance brand.

24m 17s

Stefano, has worked at a variety of global sports, fashion and outdoor brands. Including most recently as CEO of the Woolwich brand.

24m 29s

Moving to the outdoor performance segment, which delivered a great quarter led by Solomon Footwear and Apparel. Partially offset by softer trends in winter sports equipment. Salomon footwear and apparel now represent twothree of the outdoor up significant from 54% in 2022. Solomons NIC surpassed $1,000,000,000 of sales in 2024. But it is still tiny relative to the $180,000,000,000 global Semic market. We believe Salomon sneakers have an authentic and unique market position with technical features designed for the mountain. But also great for everyday use. Our unique style and the technical attributes are resonating with consumers at a time when they are more receptive than ever to wearing new sneaks Long term, we expect solid and soft goods to grow double digit annually. In Q4, Sallie Moon footwear and apparel accelerated in every region led by Great China. APAC and EMEA, Direct to consumer remained the strongest growth channel for the brand. And the sports style offering continued footwear growth. And it sucks are also experiencing great momentum Originally, Solomon Soft Goods are experiencing great sell through in Europe. And we have noticed two new important trends in Europe was calling out. Number one, settlement performance sneakers are experiencing a demand recovery in Europe.

26m 17s

And number two, [indiscernible] have shifted to solid positive growth after negative trends during the last couple of years. When retailers were relying on add ons orders [indiscernible] We are increasingly seeing Salomon sneakers sales through very well at retail. Which is translating to stronger [indiscernible] We also opened two new Solomon stores in the quarter in European epicenters. London, and Milano. In Asia, direct to consumer continues to be the critical growth channel for Sallamu. Our Solomon compact shop format developed in China is working very well. And we believe these stores generate significant higher sales per square foot versus industry average. We are continuing to expand Solomon Shops in Great China. Opening 31 net new Solomon Shops in Q4 Amer. Including both owned stores and the partner stores. Bringing our total count to 196 in Kui, China. We believe Solomons has the opportunity to grow to several hundred locations over time in just Tier one and the two cities. And in 2025, we expect to open about 100 new Solomon shops in Great China including Panamax, Our new Sonova flagship in Shanghai is performing very well in the first This store represents a pinnacle expression of the brand in China.

27m 57s

Which combines footwear and apparel in a comprehensive offering and a highly immersed brand experience. In The U. S, the world's largest sneaker market we continue to lay the groundwork for Sallum's footwear long term opportunity. Our first U. S. Store a pop up shop in New York City continues to perform very well. We are seeing strong early brand buzz with key sneaker retailers across New York City. And we expect to open at least one more Solomon Shoppe in New York, The wholesale channel will be important to unlock settlement potential in The U. S. And we are beginning to successfully leverage Salomon brand heat to expand our presence with top tier existing customers. Such as Northstream, and Keith as well as new retailers, including shoe patterns, and the shares. In winter sports equipment, we continue to win with both leisure skills and the world class professionals. Atomix had a great momentum at the world Championship in Australia this month.

29m 9s

Atomic athletes McKellar Shuffering and the Breezy Johnson won gold on our iconic [indiscernible] Moving on to ball and racket highlights. We are pleased that Boer and Racket's close hands continued to improve in Q4 with growth accelerating to 22% driven by strong trends in bracket sports, and also lapping inventory carriers at the end of last year. Our TENIS three sixty continues to resonate very strongly with consumers from performance records to our apparel and footwear offering, In 2020 book, Wesson returned to the number one U. S. Mark share in performance records led by the recent upgrade and the larger federal record And in January, launched Crash V3 which is also off to a strong start. Also, [indiscernible] doubling in 2024. Apparel and footwear now represent 10% of our core and rack segment sales. Sales As I mentioned, we are seeing strong reception to our Western tennis apparel and footwear offering. Especially in The U. S. And China. In Q4, we opened the next six new Western brand shops in China. Bringing the total owned and the partner store count in the region to 43 In 2025, we plan to open approximately 50 Wilson-ten thousand three hundred and sixty shops in China between owned and the partner laws.

30m 56s

In North America, we opened a Tennis three sixty concept store in the Dallas North Park Hopewell in Q4. Which has been performing very well and that we also will begin testing tennis paraling approximately 56 Wallingford locations this year. [indiscernible] With that, I will turn it over to Thanks, James. With over 20% revenue growth, healthy margin expansion, strong free cash flow generation and the continued transformation of our capital structure the fourth quarter of twenty twenty four marked a financial turning point [indiscernible] Although expected FX headwinds will weigh slightly on our 2025 reported financial results, continued strong momentum from our highest margin Technical Apparel segment and accelerating momentum in outdoor performance soft goods plus strong and stable positions from our market leading hard goods franchises gives me confidence that Amyr Sports is well positioned to deliver another year of strong and profitable growth in 2025. Let's first take a moment to reflect on the key highlights of 2024. Hammer Sports delivered 18% growth in 2024 Amer, with broad based strength across brand segments, regions, channels and categories. Our Tariffs and Solomon Footwear continued their very strong trajectories and Wilson returned to positive growth.

32m 32s

We delivered meaningful adjusted operating margin expansion from 9.8% last year to 11.1% in 2024.

32m 40s

Driven by the mix shift towards technical apparel and we also significantly reduced our leverage effective tax rate and annual interest expense.

32m 51s

Now turning to our Q4 results.

32m 53s

Ameren Sports grew sales 23% in Q4 on a reported basis The strong group sales performance was led by Technical Apparel while outdoor performance and ball and racket also delivered very solid growth in the quarter.

33m 11s

By channel, the group continues to be led by D2C. Which grew 46% led by Arcterix and Salomon Footwear.

33m 20s

We saw solid wholesale growth of 6% year over year led by improving trends at Wilson. Regional growth was led by Greater China increased 54% followed by Asia Pacific which grew 52%.

33m 36s

The Americas accelerated to 15% growth and EMEA grew 8% in Q4. [indiscernible] We are pleased to again achieve over 50% in growth in Greater China for both Q4 and the full year.

33m 51s

There are several key reasons why we are confident in our future growth in this important consumer market. Number one, our brands compete in one of the healthiest and fastest growing consumer segments in China.

34m 4s

The premium sports and outdoor market, The outdoor trend in China continues to be very strong attracting younger consumers female consumers even luxury shoppers. Additionally, the China consumer landscape today has evolved in with some brands doing extremely well including ours.

34m 29s

Our still small specialized brands are known for their expertise high quality and technical innovation which resonates with Chinese shoppers. Thirdly and most important, we believe we have a great team in China.

34m 45s

Our deep expertise and unique scalable operating platform gives us a significant competitive advantage across the portfolio. Turning to profitability. Adjusted gross margin increased three seventy basis points to 56.4% in Q4 primarily driven by positive segment [indiscernible] [indiscernible] and channel mix shift combined with lower discounting actions Going forward, we expect our highest gross margin franchise in our Terex to continue to be the biggest underlying driver of our ongoing gross margin expansion. Adjusted SG and A expenses as a percentage of revenues delevered by 20 basis points and represented 43.3 Technical Apparel and Outdoor Performance SG and A deleverage was driven by investments to support growth and was partially offset by ball and racket and headquarters expense leverage. Driven by the strong gross margin expansion, we generated a three thirty basis point increase from 10.3% last year to 13.6% in Q4. Adjusted corporate expenses were $12,000,000 down from $17,000,000 in Q4 of last year. D and A was $77,000,000 which includes $37,000,000 of ROU depreciation. Adjusted net finance costs in the quarter was $64,000,000 and included $24,000,000 of FX losses on intercompany balances as a result of the significant appreciation of the U. S. Dollar in Q4.

36m 34s

Going forward, will enhance our hedge program to include these intercompany transactions. In the quarter, our adjusted income tax expense was $67,000,000 which equates to an adjusted effective tax rate of 42%. Adjusted net income was $90,000,000 in Q3 compared to an adjusted net loss of $31,000,000 in the prior year period.

37m 1s

Adjusted diluted earnings per share was $0.17 compared to adjusted diluted loss per share of $0.08 last year.

37m 13s

Turning to segment results. Technical apparel revenues increased 33 percent $745,000,000 led by Arcterix.

37m 23s

Growth was fueled by 44% to D2C expansion including a 29% omni comp.

37m 30s

A great result comparing against a 33% omni comp in the fourth quarter of last year.

37m 37s

Our Terex D2C momentum continues to be fueled by both new and existing consumers across all regions, [indiscernible] and product categories. Technical apparel wholesale revenues roughly flat driven by timing of shipments compared to the prior year.

37m 55s

We continue to have strong demand for Oktterix From The Wholesale Channel. Regionally, Technical Apparel Growth Was Led By Amer China, followed by Asia Pacific The Americas and EMEA.

38m 10s

All regions grew strong double digits fueled by our CEREX's retail expansion.

38m 15s

Technical Apparel adjusted operating margin expanded 30 basis points to 24.3% driven by higher gross margins from favorable product channel and regional mix and supported by savings in freight costs. This was partially offset by SG and A deleverage driven by investments in technology, marketing and operations to support continued D2C expansion, including new store openings. Moving to our outdoor performance segment, which saw revenues increase 13% to $594,000,000 mainly driven by very strong performance in Salomon footwear, apparel, bags and socks, The D2C channel grew strong double digit driven by door openings, especially in Asia Pacific, Greater China and EMEA as well as e commerce developments in all regions.

39m 11s

This was partially offset by a decline in Winne Sports Equipment due to soft reorders in Europe resulting from poor snow conditions, and also a material FX drag due to its large euro exposure. [indiscernible] By channel, outdoor performance D2C grew 58% led by greater China and APAC, and wholesale improved to plus 1% from a slight decline last quarter.

39m 39s

The wholesale results are impacted by continued soft wholesale market conditions in EMEA and North America for Winne Sports equipment. 2024 was challenging for the Wyndham sports equipment market overall due to slower trends in North America where ski equipment sales are rebasing after a strong run through and beyond COVID.

40m 2s

This is in addition to cautious orders in EMEA at two tough snow seasons in Europe.

40m 8s

However, given our great brands and products and scale advantages, we believe we are taking market share, especially in Atomic. Our assumption is that the winter sports equipment market will be relatively flat in 20 Longer term, while the winter sports equipment business will be a slower growth business for us, the industry remains healthy and we expect this business to grow low single digits annually. As a reminder, Wino Sports Equipment now represents one third of the outdoor performance segment.

40m 43s

Outdoor Performance adjusted operating profit margin performance to 11.1% this year, driven by solid gross margin expansion given the higher mix of footwear which carry a higher gross margin than 22% to $296,000,000 driven by racket sports and soft goods.

41m 18s

The strong growth was also helped by easier comparisons from last year when Wilson went through a heavier liquidation period to normalize inventory levels.

41m 28s

We are very pleased with the strong rebound. But would caution that 20% plus is not a sustainable growth rate and we continue to expect ball and racket to grow low to mid single digits long term.

41m 42s

By category, the strong double digit growth was led by our marquee racket sports franchise as well as our small but fast growing soft goods segment, which now represents 10% of ball and racket sales.

41m 56s

We are seeing very strong momentum in Tennis three sixty, a especially in North America, Greater China and APAC.

42m 3s

We also saw strong growth in EagleShield apparel, [indiscernible] and Pickleball.

42m 10s

Inflatable balls and baseball also grew in the quarter declined slightly, While the Racket segment adjusted operating profit margin increased six sixty basis points compared to the fourth quarter of twenty twenty three to negative 3.7%.

42m 28s

Primarily driven by higher pulp price sales, given inventory clearance in the second half of last year when the channel inventories were elevated.

42m 38s

SG and A levered thanks to tight cost controls on higher revenue. Turning to the balance sheet. Funded by our recent $1,000,000,000 equity raise, and strong cash conversion in Q4, we paid down our entire $1,200,000,000 of term loans before year end. And ended the quarter with $600,000,000 of net debt down from $2,000,000,000 at the end of Q3.

43m 5s

Using our 2024 adjusted operating profit, our net debt to adjusted EBITDA ratio was approximately 0.7 times at the end of Q4.

43m 18s

Looking forward, paying down non deductible interest debt remains a high return usage of excess cash. Also, our focus on inventory discipline is paying off.

43m 29s

Inventories rose 11/2024 well below our 18% sales growth. Driven by strong profit growth and disciplined working capital management, we generated $425,000,000 of operating cash flow in 2024, translated to approximately $150,000,000 of free cash flow for the year.

43m 51s

I would also like to provide an update on our sourcing exposure in light of the contemplated new tariffs on imports from China Canada, Mexico and Vietnam.

44m 2s

In 2024, sourcing to The U. S. From China, Vietnam, Canada and Mexico combined represented approximately 20% of global sourcing. China and Vietnam make up the majority of this exposure while sourcing from Canada and Mexico to The U. S. Accounts for less than 1% of the total. Similar to when we experienced a rise in in China tariffs in 2018 and 2019, our ball and racket segment will be most [indiscernible] However, given our various mitigation levers including price increases, supply chain flexibility and partnership with vendors to share the impact we believe we are well equipped to weather a variety of tariff scenarios.

44m 47s

Now turning to guidance. We are off to a strong start in 2025 and are confident in our financial outlook for 2025.

44m 57s

As we have said on previous earnings calls, should strong trends continue and better than anticipated demand materialize, we will be well positioned to deliver financial performance ahead of our expectations. For the full year of 2025, we expect reported group revenue growth between 1315%, which assumes a two fifty basis points drag from unfavorable at current exchange rates. This incorporates approximately 20% growth in technical apparel low double digit revenue growth in outdoor performance, and low to mid single digit growth in ball and racket. We expect adjusted gross margin of 56.5% to 57% for the full year.

45m 44s

Driven primarily by mix shift benefits we expect adjusted operating profit margin of approximately 11% to 12%. Given macro uncertainties, including FX and tariffs, our current margin expectations are more focused toward the low end of this margin range at least until we have a quarter or two under our belts. For the segments, we expect an adjusted operating margin of approximately 21% for technical apparel approximately 9.5% for outdoor performance and 3% to 4% for ball and racket. You should assume full year net finance costs of hundred and $20,000,000 and an effective tax rate of approximately 33%.

46m 31s

We expect adjusted diluted EPS of $0.64 to $0.69 per share which is based on approximately $560,000,000 fully diluted shares.

46m 42s

Also, we are assuming DNA of $350,000,000 including approximately $180,000,000 of ROU depreciation.

46m 52s

To support our new store expansion, ERP implementation and distribution and logistics investments, CapEx is expected to be approximately $300,000,000 in line with 2024.

47m 5s

Turning to the first quarter guidance.

47m 8s

We expect reported revenue growth for the group in the range of 14% to 16%. Which assumes a 300 basis point drag from unfavorable FX impact at current exchange rates. We expect adjusted gross margin to range between 56.557% in Q1 of twenty twenty five and an adjusted operating profit margin of 11% to 11.5%.

47m 37s

Our net finance costs for the quarter will be a and an effective tax rate will be approximately 33%. We expect adjusted diluted earnings per share of $0.14 to $0.15 per share. With that, I'll turn it back to the operator for Q and A. Thank you so much.

48m 12s

And with that, we will pause just a moment to compile the Q and A roster. It looks like our first question today comes from the line of Lorraine Hutchinson with Bank of America. Lorraine, please go ahead.

48m 25s

Thank you. Good morning. Can you update us on the longer term store targets for Arcterix? You've had a lot of success opening new stores and it sounds like that will continue this year. But as you think about each of your geographies, are there any up updated thoughts on how many stores you could have in each Yes. Hey Lorraine, it's Stuart.

48m 50s

We were pleased with the our new store performance in 2024. It was consistent with the strategy that we had laid out as part of the IPO process last year. And as you heard in the prepared remarks, we intend to continue to open generally the same amount of stores each year as we look forward.

49m 10s

We've had 33 net new stores in '24. So I think we've guided 25 to 30 for '24 sorry, for 25. The overall view on what's possible by each region is for the potential of around 200 stores in North America, 75 to 100 in Europe, 75 to 100 in APAC outside of China, And I think we're looking at around 150 to 200 in China, Mainland China now. So a little more bullish on on Mainland China and and I think that's how we're viewing it today. I think some of those estimates are likely conservative.

50m

And we'll continue to reevaluate them as we see success in each of those geographies.

50m 6s

Thank you. Okay. Thanks, Lorraine.

50m 11s

And our next question comes from the line of Matthew Boss with JPMorgan. Matthew, please go ahead.

50m 17s

Thanks and congrats on another nice quarter. [indiscernible] Stuart, so Stuart, could you elaborate on drivers of the comp acceleration to nearly 30% at Arcterix in the fourth quarter. Any change in demand trends post holiday for the brand And can you speak to the progression of inventory and in stocks? To further support demand in the into 25%, just where you stand today in the progression as the year Thanks, Matt.

50m 51s

So the comp drivers we saw broad based strength across all of our comp KPIs The biggest factor was traffic.

51m 3s

And that's true in store as well as online. That was the biggest driver of the comp, big increases in traffic across all regions and channels, We did see very healthy conversion. So typically when you see big traffic increases, it can pressure conversion. We saw modest increases in conversion, again, in store and online. We had an e commerce result in Cyber five that set a new record for the company and we saw increases in AOV and average selling prices. So the KPIs are generally green across the board.

51m 45s

So and in terms of demand post holiday, what I would say is we've seen a very strong continuation of momentum out of the fourth quarter into the first quarter we've seen [indiscernible] The success that we posted in the fourth quarter continuing Q1 I mean, obviously, we're an outerwear company. The balance of our business is weighted to outerwear. And so this is the sort of the time of the year when we're [indiscernible] [indiscernible] see our most significant sales opportunity. So we've been pleased with the momentum we've seen into Q1. So and then from an inventory standpoint, we ended the year really clean with inventory growth well below our revenue growth As I've said on previous calls, we certainly left some revenue on the table in twenty twenty twenty four, we put a lot of focus on how we planned our inventories in the '25 particularly in footwear, where we had some really painful out of stock positions through much of 'twenty four. So We think we'll be in a much better position for footwear into 2025 and we've got exciting new models that we'll introduce and so the story continues in terms of how we're developing our footwear strategy.

53m 17s

Great. Thanks, Matthew. And our next question comes from the line of Brook Roach with Goldman Sachs. Brook, Go ahead.

53m 28s

Good morning and thank you for taking our question. As you look to sustain the strong revenue growth momentum that you have across each of your brands. Can you elaborate on the investments that you're looking to make in and A throughout the year? Where should we be? Focused on the investments that you are making? And how should we be thinking about the cadence and payoff of those investments longer term? Thank you. Hi, thanks. This is Andrew.

53m 55s

As we as you saw last year, we continue to make investments in SG and A and when you think about just really the combination of our investments we're focused on new store build out. We're focused on increasing the growth and the connection to our consumers both online through new store build out. And then, yes, there's some infrastructure things that we're focused on as well as far as our our ERP system, and our logistics and supply chain. As you think about 2025, The investments that we've made in 2023 and 2024 we believe that those will start to scale And so we're calling SG and A in 2025 to be relatively flattish.

54m 43s

Thanks so much. Thanks, Brett.

54m 47s

And our next question comes from the line of Paul Lejuez with Citi. Paul, please go ahead. Hey, thanks guys. Hey, Stuart, curious how you're thinking about growth in F-twenty '5 and the footwear and women's side of the business. And if you could remind us where you are as a percent of sales in those two segments within our tariffs? And then any changes or updates to the distribution strategy for our products on the footwear side? Thanks. Yes. Thanks, Paul. [indiscernible] the footwear strategy remains a big focus for us as we've talked about over the last year, We saw exciting growth Amer the course of 2024 and it could have probably delivered higher sales [indiscernible] Have we had better in stocks [indiscernible] over 60% in footwear over the course of the year And we saw the for much of the year, the the penetration had reached nearly 10% We finished the year a little bit under 10% overall.

56m 17s

And and see the potential for the business to be over 20% in footwear over the next several years.

56m 25s

Our women's business likewise, as we mentioned on the call, grew faster than our overall business definitely faster than our men's business. And we saw the sales there approaching almost 40% in the fourth quarter.

56m 45s

Overall penetration grew a couple of hundred basis points the fourth quarter and for the full year and that was reaching sort of the mid-20s, sort of 5% overall.

56m 55s

For women's as a percent of total sales, So continue to see the opportunity for our women's business versus our men's business to achieve a fifty-fifty mix, if you will, of apparel. If we look at just apparel, we think we have the potential for that business to come quite balanced by gender. The other questions that you had in terms of the distribution strategy for footwear, yes, I mentioned this, I think previously, we see wholesale as uniquely important for our footwear strategy It's It's how consumers like to shop for footwear in terms of being able to see a range of brands across a broader assortment than just an individual brand So we think that expanding that distribution, particularly in U. S, is going to be critical for the overall success. So we're investing in the team and the resources and the capabilities that will enable us to compete more effectively And at the same time, we're going to create, I think, an exciting experience within our own channels for our footwear So and I think it will overall complement not only the footwear success, but just the overall brand awareness This will be a driver of engagement with consumers beyond just outerwear.

58m 25s

It will make us more relevant in the springsummer months It will create a new anchor for our business. To be relevant in the warmer part of the year as we support our hike in our con apparel assortment. So it It all fits together in an important way.

58m 43s

What happened to Door Town on the footwear?

58m 46s

Side this year? It's so early for us in this. With we've had we've seen a lot of appetite with our existing wholesale partners REI in particular is what I call out. We're seeing increases in our in the amount of doors that are offering our Terex footwear but it's still relatively small in the grand scheme of things. And we're excited as we're talking to not only outdoor retailers, but also specialty footwear retailers. So more to follow on that Paul as we develop those plans in 2025 talk more about it.

59m 32s

Great.

59m 34s

And our next question comes from the line of Laurent Vasilescu with P and B Paribas.

59m 41s

Please go ahead.

59m 42s

Good morning. Thanks very much for taking my question. James, Andrew, I wanted to ask about regional performance. Americas and EMEA both grew mid single digits in 2024.

59m 52s

It seems like there's real momentum in these two key markets in the prepared remarks across the three brands.

59m 59s

Should we assume a similar mid single digit growth rate for 2025? I know you don't guide specifically by region, but any color there or should we kind of assume that it could be a little bit higher growth for 2025? Thank you.

1h 13s

Yes, we continue to expect in 2025, all of our regions to continue to grow well. And and continue to see positive growth across these two regions. Obviously, you saw the almost 50% growth in APAC and and Greater China and obviously the mid singles in EMEA and North America.

1h 37s

And we don't see any real pullback in any of those metrics going forward? [indiscernible] [indiscernible] There was meaningful recovery in North America as it related to Wilson given the inventory pipeline was pretty full in 2023, ex 'twenty three.

1h 1m 1s

And so back half of twenty twenty four you saw that recovery and so a lot of that inflection was notably from our strong business in North America with Wilson.

1h 1m 12s

And for e mail, I just want to add one more point. For e mail and we have a very solid plan to accelerate speed up our overall [indiscernible] in e mail markets. You can tell from Q4, we already see a big improvement in EMEA in terms of overall sales revenue growth from Solomon Software especially from footwear. So the trend is still carry on. So for email, I do believe the overall growth pattern will also be strengthened in 2025. Very helpful, James and Andrew Amer.

1h 1m 53s

And then following the December primary offering, are there further opportunities Andrew to reduce your finance costs and tax rate the next twelve to eighteen months? Where do you want leverage ultimately to go? And where do you think the tax rate can go over the next couple of years?

1h 2m 13s

Yes, good question. As I've always as I've continued to say, even though we had meaningful pay down in our debt and really strengthened our balance sheet, Paying off the remainder senior secured note with excess cash is still a very high and accretive use of cash given the the fact that that doesn't carry a tax shield. So we will continue to think about ways to prioritize that that focus.

1h 2m 41s

With regard to and the second question, with around the tax rate, we are continuing to drive that. As you can see, the rate is down into the low 30s now and we see that we will continue to drive that toward our statutory rate close to 27%. All right. Thank you, Laurent. And our next question comes from the line of Michael Binetti with Evercore. Michael, please go ahead.

1h 3m 8s

Hey, guys. Congrats on a great quarter.

1h 3m 11s

Let me just ask for first quarter. Could you just help us think through the revenue assumptions by segment and any one time dynamics to think about in the first quarter that we should have in our model? And I'm also curious if you could break down a little bit how you're looking at outdoor this year. You said low double digit growth.

1h 3m 28s

But I think you said you expect the winter equipment category to be flat this year.

1h 3m 32s

So maybe just a little bit help understanding how you're planning that for the year?

1h 3m 38s

Hey, Michael, it's Omar. So we're only guiding segments on an annual basis.

1h 3m 44s

Kind of read the modeling in your hands as you think about the different growth vectors. But no major callouts either across segments that would that you should really think about when you're modeling the segments. Across the quarters.

1h 3m 57s

I mean, we'll continue we'll just continue to remind that second quarter from a cadence perspective, we we believe that 2025 is going to be a little more balanced as you compare it to 2024 where you saw accelerating growth each quarter.

1h 4m 14s

Remember the second quarter is our smallest quarter both from a top line revenue as well as a profitability perspective.

1h 4m 20s

Okay.

1h 4m 21s

Let me try a couple of different questions. And I guess since you and you mentioned the sourcing partners, what is the biggest sourcing region into The U. S. Just so we understand as this tariff situation continues to evolve. It sounds like the countries you listed are pretty small. Overall. And then when you said you currently expect EBIT margin at the low end of the the guidance. Was that due to something in the gross margin outlook or is that should I more think about that as there's some sticky SG and A and conservatively thinking about revenues at the low end. Just help in how you're thinking about that. Yes, Michael, I'll answer the second question first. When we talked about focusing toward the low end early on, it's just macro uncertainties. I mean, we believe that, that we'll continue to EBIT in line with our algo But as we get out of the first and second quarter, you continue to look at some of the uncertainties around the macro We just don't want to get ahead of our atomic speeds too quickly. On the second point, where you talk about our biggest sourcing regions, they are as I talked about in my prepared remarks, I talked about 20% coming from those from those regions of Mexico, Canada, Vietnam and China.

1h 5m 33s

Obviously, Vietnam and China with China being slightly bigger, makes up the lion's share of that Michael, did I hit on all your Okay. [indiscernible] Okay. Our next question looks like it comes from the line of John Kernan with TD Cowen.

1h 5m 56s

John, please go ahead.

1h 5m 58s

Hey, good morning, everybody. Congrats on a great year. Can you unpack the gross margin expansion a bit more? Obviously, channel mix has played a huge factor First margin was up over four fifty basis points in the back half of the year. How you're guiding it up? At the high end to 57%. How should we think about drivers of the gross margin expansion one, in the back half of 2024 that drove that upside and then two, how to think about the drivers of the gross margin to that 57% range in fiscal twenty twenty five? [indiscernible] So from a gross margin perspective, consistently Arterix, our highest margin business is our fastest growing business continues to be the overwhelming driver of the gross margin expansion. What you would have seen in the back half of 2024 was the lapping of what was coming out of 2023 in the sense that we participated meaningfully a promotional environment and especially in our ball and racket segment last year. And so you saw some expansion of just lapping that comp year over year. So the lion's share on a steady state basis continues to be [indiscernible] To a lesser extent, you start to see some mix mix shift expansion within the segment.

1h 7m 21s

So as footwear becomes a larger portion of outdoor performance, it carries a higher margin. Than the rest of the segment and as the soft goods, so the Tennis three sixty franchise that we have in ball and racket, as that continues to grow, that's now 10% of the ball and racket segment.

1h 7m 42s

Start to see margin expansion there. But again, I close out with our Terex margin profile and the rate of its growth and the proportion that it has into the total portfolio is the largest driver of the margin expansion.

1h 7m 57s

Yes. And John, I'll just tack onto that. We saw healthy expansion in gross in our tariffs where and that was driven by lower transportation costs lower markdowns, and higher product margins sort of first cost. So a pretty strong view across the board for gross margin.

1h 8m 18s

Excellent. Thank you.

1h 8m 25s

All right. Thank you, John. And that appears to be all the questions we have. So I will now turn the call back over to management for closing comments.

1h 8m 33s

Thanks everyone for joining us See you for our 1Q call in about three months.

Key Insights

Amer Sports reported strong financial performance in Q4 2024, with 23% sales growth and 300 basis points of adjusted operating margin expansion, driven by Technical Apparel and Outdoor Performance segments. Full-year 2024 revenue grew 18% to $5.2 billion, with adjusted operating margin reaching 11.1%.
The company plans to open 25-30 net new stores in 2025, focusing on expanding its Arcteryx and Salomon brands globally, including significant growth in Greater China. Arcteryx's footwear and women's categories showed strong growth, with footwear nearing 10% of sales and women's apparel reaching mid-20% penetration.
For 2025, Amer Sports expects group revenue growth of 13-15%, adjusted gross margin of 56.5%-57%, and adjusted operating profit margin of 11%-12%. Adjusted diluted EPS is projected at $0.64-$0.69, with a focus on continued investments in D2C channels, store expansion, and supply chain improvements.
The Outdoor Performance segment is expected to grow in low double digits in 2025, despite flat expectations for winter sports equipment. Salomon footwear and apparel continue to drive growth, with plans to open approximately 100 new Salomon shops in Greater China.
Gross margin expansion in 2025 will be driven by the mix shift toward higher-margin businesses like Arcteryx and Salomon footwear, alongside lower transportation costs and markdowns. The company also aims to reduce its tax rate to approximately 27% over the next few years.

Recent Transcripts

Amra Sports delivered record-breaking revenue growth of 18% in FY2024.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$2.1B	$2.6B	$3.4B	$4.4B	$5.2B
Cost of Revenue	$1.1B	$1.3B	$1.7B	$2.1B	$2.3B
Gross Profit	$1B	$1.3B	$1.7B	$2.3B	$2.9B
Gross Profit %	47%	49%	50%	52%	55%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$2.1B

$2.6B

$3.4B

$4.4B

$5.2B

Cost of Revenue

$1.1B

$1.3B

$1.7B

$2.1B

$2.3B

Gross Profit

$1B

$1.3B

$1.7B

$2.3B

$2.9B

Gross Profit %

47%

49%

50%

52%

55%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$152M	-$105M	-$220M	-$209M	$78M
Dep. & Amort.	$158M	$166M	$185M	$221M	$274M
Def. Tax	$15M	$32M	$49M	$104M	$83M
Stock Comp.	$0	$0	$0	$11M	$20M
Chg. in WC	$106M	$67M	-$338M	-$92M	$16M

2020

2021

2022

2023

2024

Net Income

-$152M

-$105M

-$220M

-$209M

$78M

Dep. & Amort.

$158M

$166M

$185M

$221M

$274M

Def. Tax

$15M

$32M

$49M

$104M

$83M

Stock Comp.

$11M

$20M

Chg. in WC

$106M

$67M

-$338M

-$92M

$16M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$390M	$498M	$377M	$483M	$345M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$390M	$498M	$377M	$483M	$345M
Receivables	$672M	$630M	$758M	$717M	$607M
Inventory	$570M	$512M	$855M	$1.1B	$1.2B

2020

2021

2022

2023

2024

Cash

$390M

$498M

$377M

$483M

$345M

ST Investments

Cash & ST Inv.

$390M

$498M

$377M

$483M

$345M

Receivables

$672M

$630M

$758M

$717M

$607M

Inventory

$570M

$512M

$855M

$1.1B

$1.2B

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Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

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Earnings

Report Date

Feb 25, 2025

Reported Revenue

1.6B

Avg 1d Change

6.21%

Report Period

Q4 2024

Reported EPS

0.17

Implied Move 1d

12.11%

Transcript

13m 8s

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24m 17s

Stefano, has worked at a variety of global sports, fashion and outdoor brands. Including most recently as CEO of the Woolwich brand.

24m 29s

26m 17s

27m 57s

29m 9s

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32m 32s

We delivered meaningful adjusted operating margin expansion from 9.8% last year to 11.1% in 2024.

32m 40s

Driven by the mix shift towards technical apparel and we also significantly reduced our leverage effective tax rate and annual interest expense.

32m 51s

Now turning to our Q4 results.

32m 53s

33m 11s

By channel, the group continues to be led by D2C. Which grew 46% led by Arcterix and Salomon Footwear.

33m 20s

We saw solid wholesale growth of 6% year over year led by improving trends at Wilson. Regional growth was led by Greater China increased 54% followed by Asia Pacific which grew 52%.

33m 36s

The Americas accelerated to 15% growth and EMEA grew 8% in Q4. [indiscernible] We are pleased to again achieve over 50% in growth in Greater China for both Q4 and the full year.

33m 51s

34m 4s

34m 29s

34m 45s

36m 34s

37m 1s

Adjusted diluted earnings per share was $0.17 compared to adjusted diluted loss per share of $0.08 last year.

37m 13s

Turning to segment results. Technical apparel revenues increased 33 percent $745,000,000 led by Arcterix.

37m 23s

Growth was fueled by 44% to D2C expansion including a 29% omni comp.

37m 30s

A great result comparing against a 33% omni comp in the fourth quarter of last year.

37m 37s

37m 55s

We continue to have strong demand for Oktterix From The Wholesale Channel. Regionally, Technical Apparel Growth Was Led By Amer China, followed by Asia Pacific The Americas and EMEA.

38m 10s

All regions grew strong double digits fueled by our CEREX's retail expansion.

38m 15s

39m 11s

39m 39s

40m 2s

This is in addition to cautious orders in EMEA at two tough snow seasons in Europe.

40m 8s

40m 43s

41m 18s

The strong growth was also helped by easier comparisons from last year when Wilson went through a heavier liquidation period to normalize inventory levels.

41m 28s

We are very pleased with the strong rebound. But would caution that 20% plus is not a sustainable growth rate and we continue to expect ball and racket to grow low to mid single digits long term.

41m 42s

By category, the strong double digit growth was led by our marquee racket sports franchise as well as our small but fast growing soft goods segment, which now represents 10% of ball and racket sales.

41m 56s

We are seeing very strong momentum in Tennis three sixty, a especially in North America, Greater China and APAC.

42m 3s

We also saw strong growth in EagleShield apparel, [indiscernible] and Pickleball.

42m 10s

42m 28s

Primarily driven by higher pulp price sales, given inventory clearance in the second half of last year when the channel inventories were elevated.

42m 38s

43m 5s

Using our 2024 adjusted operating profit, our net debt to adjusted EBITDA ratio was approximately 0.7 times at the end of Q4.

43m 18s

Looking forward, paying down non deductible interest debt remains a high return usage of excess cash. Also, our focus on inventory discipline is paying off.

43m 29s

43m 51s

I would also like to provide an update on our sourcing exposure in light of the contemplated new tariffs on imports from China Canada, Mexico and Vietnam.

44m 2s

44m 47s

Now turning to guidance. We are off to a strong start in 2025 and are confident in our financial outlook for 2025.

44m 57s

45m 44s

46m 31s

We expect adjusted diluted EPS of $0.64 to $0.69 per share which is based on approximately $560,000,000 fully diluted shares.

46m 42s

Also, we are assuming DNA of $350,000,000 including approximately $180,000,000 of ROU depreciation.

46m 52s

To support our new store expansion, ERP implementation and distribution and logistics investments, CapEx is expected to be approximately $300,000,000 in line with 2024.

47m 5s

Turning to the first quarter guidance.

47m 8s

47m 37s

48m 12s

48m 25s

48m 50s

49m 10s

50m

And we'll continue to reevaluate them as we see success in each of those geographies.

50m 6s

Thank you. Okay. Thanks, Lorraine.

50m 11s

And our next question comes from the line of Matthew Boss with JPMorgan. Matthew, please go ahead.

50m 17s

50m 51s

So the comp drivers we saw broad based strength across all of our comp KPIs The biggest factor was traffic.

51m 3s

51m 45s

53m 17s

Great. Thanks, Matthew. And our next question comes from the line of Brook Roach with Goldman Sachs. Brook, Go ahead.

53m 28s

53m 55s

54m 43s

Thanks so much. Thanks, Brett.

54m 47s

56m 17s

And and see the potential for the business to be over 20% in footwear over the next several years.

56m 25s

56m 45s

Overall penetration grew a couple of hundred basis points the fourth quarter and for the full year and that was reaching sort of the mid-20s, sort of 5% overall.

56m 55s

58m 25s

58m 43s

What happened to Door Town on the footwear?

58m 46s

59m 32s

Great.

59m 34s

And our next question comes from the line of Laurent Vasilescu with P and B Paribas.

59m 41s

Please go ahead.

59m 42s

Good morning. Thanks very much for taking my question. James, Andrew, I wanted to ask about regional performance. Americas and EMEA both grew mid single digits in 2024.

59m 52s

It seems like there's real momentum in these two key markets in the prepared remarks across the three brands.

59m 59s

1h 13s

1h 37s

1h 1m 1s

And so back half of twenty twenty four you saw that recovery and so a lot of that inflection was notably from our strong business in North America with Wilson.

1h 1m 12s

1h 1m 53s

1h 2m 13s

1h 2m 41s

1h 3m 8s

Hey, guys. Congrats on a great quarter.

1h 3m 11s

1h 3m 28s

But I think you said you expect the winter equipment category to be flat this year.

1h 3m 32s

So maybe just a little bit help understanding how you're planning that for the year?

1h 3m 38s

Hey, Michael, it's Omar. So we're only guiding segments on an annual basis.

1h 3m 44s

1h 3m 57s

1h 4m 14s

Remember the second quarter is our smallest quarter both from a top line revenue as well as a profitability perspective.

1h 4m 20s

Okay.

1h 4m 21s

1h 5m 33s

1h 5m 56s

John, please go ahead.

1h 5m 58s

1h 7m 21s

1h 7m 42s

1h 7m 57s

1h 8m 18s

Excellent. Thank you.

1h 8m 25s

All right. Thank you, John. And that appears to be all the questions we have. So I will now turn the call back over to management for closing comments.

1h 8m 33s

Thanks everyone for joining us See you for our 1Q call in about three months.

Key Insights

Amer Sports reported strong financial performance in Q4 2024, with 23% sales growth and 300 basis points of adjusted operating margin expansion, driven by Technical Apparel and Outdoor Performance segments. Full-year 2024 revenue grew 18% to $5.2 billion, with adjusted operating margin reaching 11.1%.
The company plans to open 25-30 net new stores in 2025, focusing on expanding its Arcteryx and Salomon brands globally, including significant growth in Greater China. Arcteryx's footwear and women's categories showed strong growth, with footwear nearing 10% of sales and women's apparel reaching mid-20% penetration.
For 2025, Amer Sports expects group revenue growth of 13-15%, adjusted gross margin of 56.5%-57%, and adjusted operating profit margin of 11%-12%. Adjusted diluted EPS is projected at $0.64-$0.69, with a focus on continued investments in D2C channels, store expansion, and supply chain improvements.
The Outdoor Performance segment is expected to grow in low double digits in 2025, despite flat expectations for winter sports equipment. Salomon footwear and apparel continue to drive growth, with plans to open approximately 100 new Salomon shops in Greater China.
Gross margin expansion in 2025 will be driven by the mix shift toward higher-margin businesses like Arcteryx and Salomon footwear, alongside lower transportation costs and markdowns. The company also aims to reduce its tax rate to approximately 27% over the next few years.

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