Amer Sports, Inc. (NYSE:AS) shares are trading lower in the premarket session on Tuesday.
The company reported second-quarter adjusted earnings per share of 6 cents, beating the analyst consensus estimate of 3 cents.
Quarterly sales of $1.24 billion (+23% year over year) outpaced the Street view of $1.18 billion.
“The inflection of Salomon footwear adds a strong second leg of growth to Arc’teryx’s already exceptional sales and margin trajectory, significantly elevating the long-term value creation potential of our portfolio of premium sports and outdoor brands,” said CFO Andrew Page.
In addition:
Technical Apparel sales rose 23% to $509 million, driven by 15% omni-comp growth.
Outdoor Performance revenue climbed 35% to $414 million, up 32% on a constant currency basis.
Ball & Racquet Sports advanced 11% to $314 million, or 10% on a constant currency basis.
Gross margin in the quarter under review increased 270 basis points to 58.5%, while adjusted gross margin increased 250 basis points to 58.7%.
Adjusted operating profit increased 130% to $67 million, including $19 million of government grants received in the second quarter, as compared to the second half of 2024. Adjusted operating margin increased 260 basis points to 5.5%.
“Although the tariff impact to our Ball & Racquet segment will be slightly higher than expected, given the mitigation strategies already underway across brands, we continue to expect the impact to our consolidated results to be negligible this year,” the CFO added.
Year-over-year inventories rose 29% to $1.6 billion. The company reported net debt of $640 million at the end of the quarter. Cash and cash equivalents stood at $303 million during the same period.
Outlook: Amer Sports raised its FY2025 GAAP EPS outlook to 77 cents to 82 cents. That’s up from 67 cents to 72 cents, versus the 71-cent estimate.
The company also lifted its FY2025 sales forecast to $6.22 billion to $6.27 billion, above the earlier range of $5.96 billion to $6.06 billion. The revised guidance exceeds Wall Street's sales estimate of $6.08 billion.
“This updated guidance assumes the current 30% incremental U.S. tariff on goods from China plus the current tariff rates on all other countries will stay in place for the remainder of 2025,” Page added.
Amer Sports expects third-quarter GAAP EPS in the range of 20 cents to 22 cents, compared with the 21-cent estimate. The company projects sales of $1.62 billion, above the $1.54 billion consensus.
Price Action: AS shares are trading lower by 2.59% to $36.53 premarket at last check Tuesday.
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