Amer Sports' Arc'teryx Drives Q4 Revenue Beat, Expects Continued Growth in 2025 Amid Lingering Currency Challenges

Amer Sports, Inc. AS shares are trading lower after the company reported fourth-quarter results.

Revenue rose 23% year over year (Y/Y) to $1.636 billion (+24% Y/Y on a constant currency basis), exceeding the consensus of $1.600 billion.

By segment, Technical Apparel revenue rose 33% Y/Y to $745 million, reflecting a 29% omni-comp growth. Outdoor Performance revenue rose 13% Y/Y to $594 million and Ball & Racquet Sports revenue grew 22% Y/Y to $296 million.

Adjusted gross margin increased by 370 basis points Y/Y to 56.4% in the quarter. Adjusted operating margin expanded 330 basis points Y/Y to 13.6%.

Adjusted EPS of 17 cents beat in line with the consensus.

Cash and equivalents totaled $345 million at the end of the year.

“Fourth quarter was a great finish to a historic year for Amer Sports Group, with strong performance across all segments and geographies. Led by Arc’teryx, our unique portfolio of premium technical brands continues to create white space and take market share with long growth runways still ahead,” said CEO James Zheng.

Outlook: Amer Sports expects FY25 EPS of $0.64-$0.69 vs. consensus of $0.67 and first-quarter $0.14-$0.15 compared to the estimate of $0.15.

The company sees reported revenue growth of 13%–15% in FY25 and 14%–16% in the first quarter of 2025.

“Although foreign currency exchange headwinds will weigh slightly on our 2025 financial results, continued strong momentum from our highest-margin Arc’teryx franchise and accelerating momentum in Salomon footwear, plus strong and stable positions from our market-leading Hardgoods franchises, gives me confidence that Amer Sports is well positioned to deliver another year of strong and profitable growth in 2025,” CFO Andrew Page said.

Price Action: AS shares are down 2.10% at $28.00 premarket at the last check Tuesday.

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