Amer Sports reported better-than-expected earnings early Tuesday, with the sporting goods and apparel company extending a streak of accelerating revenue growth. Amer Sports stock gapped to a record high.
Amer Sports earnings leaped 145% vs. a year earlier to 27 cents a share on an adjusted basis. Revenue grew nearly 23% to $1.47 billion.
Amer Sports Earnings
Analyst consensus pegged Amer Sports earnings at 15 cents a share with sales up 17% to $1.385 billion for the maker of Wilson sports equipment.
The company raised full-year guidance. It forecast revenue growth of 15%-17% and earnings of 67-72 cents a share. In the previous fiscal year, it earned 47 cents a share, according to MarketSurge. Amer also forecast current-quarter sales growth of 16%-18% and EPS of zero to 2 cents vs. 5 cents a year ago.
The forecasts assume that the current 30% tariff on Chinese goods and 10% tariff on other countries remain in place.
But Amer Sports said "strong pricing power positions us well to navigate rising tariffs and associated macro uncertainties," adding that "mitigation strategies" are already underway.
In the company's fourth-quarter report, executives said about 20% of the company's sourcing in 2024 came from China, Vietnam, Canada and Mexico. China and Vietnam made up most of that.
It added that "mitigation levers" such as price increases and sharing tariff impacts with vendors should leave the company prepared to deal with various tariff scenarios.
Last week, President Donald Trump slashed China tariffs temporarily to 30% from 145%, continuing a de-escalation trend on trade. Still, tariffs on China and other countries seem likely to end up far higher than where they were before 2025.
Amer Sports makes Wilson tennis rackets, basketballs and other sports gear. It owns nearly 10 brands that span the world of sports, including Louisville Slugger baseball gear. Other products include snow ski apparel and hiking shoes.
Amer Sports Stock Gaps Up
Amer Sports gapped up nearly 20% in the first half-hour of trading Tuesday following the report. The stock has topped its earlier all-time high of 34 set in January.
Shares have rebounded from the April 9 intraday low of 20.21 as the market boomed and Trump tariffs came off their highs. Amer Sports jumped 15.4% last week.
Amer Sports cleared a 29.76 double-bottom base on May 12, according to IBD MarketSurge pattern recognition. The stock had closed Monday just above the 5% buy zone, which ran to 31.25, so share are exteded. Investors who bought at the entry could consider taking some profits.
The relative strength line has been near new highs.
Amer Sports stock has a 21-day average true range (ATR) of 5%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
There are exceptions, but given current market conditions, IBD generally suggests investors keep most of their portfolio focused on stocks with ATRs at or below 6%.
