Zinger Key Points
- Amer Sports' Q3 revenue grew 17% to $1.354B, beating expectations; adjusted EPS of $0.14 exceeded estimates.
- Strong performance in Technical Apparel (+34%) and Ball & Racquet Sports (+11%) drove profit growth and margin expansion.
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Amer Sports, Inc. AS shares are trading higher after the company reported third-quarter results.
Revenue rose 17% (both reported and constant currency basis) to $1.354 billion, exceeding the consensus of $1.301 billion. Adjusted EPS of 14 cents beat the consensus of 10 cents.
By segment, Technical Apparel revenue rose 34% to $520 million, reflecting a 20% omni-comp growth. Outdoor Performance revenue rose 8% to $534 million, and Ball & Racquet Sports revenue grew 11% to $300 million.
Adjusted gross margin increased by 410 basis points to 55.5% in the quarter. Adjusted operating profit increased 46% to $195 million, with the margin increasing 280 basis points to 14.4%.
Cash and equivalents totaled $312 million at the end of the quarter.
CEO James Zheng said, “Third quarter was very strong for Amer Sports Group across all brands and geographies. Led by Arc’teryx, our unique portfolio of premium technical brands continues to create white space and take market share in sports and outdoor markets around the world.”
“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.”
Outlook: Amer Sports currently expects FY24 adjusted EPS of $0.43 – $0.45 (vs. $0.40 – $0.44 prior) vs. consensus of $0.44 and revenue growth of 16% – 17% (vs. 15% – 17% expected earlier).
The company projects Technical Apparel revenue growth of approximately 34% (prior view: above 30%), with the segment operating margin slightly above 20%.
CFO Andrew Page stated, “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 30-70+ bps of annual adjusted operating margin expansion driven by gross margin expansion.”
Price Action: AS shares are up 3.89% at $20.30 at the last check Tuesday.
Photo via Wikimedia Commons
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