Vicki M. Young
3 min read
In This Article:
Footwear momentum at Arc’teryx and Salomon continues to drive Amer Sports Inc. — and the company is in a good position heading into the second quarter and beyond.
With revenue up 23.5 percent in the first quarter and net income skyrocketing 27-fold from year-ago levels, the company has raised full year revenue and earnings per share guidance.
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Net income was 134.6 million for the quarter ended March 31, or 24 cents a diluted share, from net income of $5.1 million, or 1 cent, a year ago. Revenue grew 23.5 percent to $1.47 billion from $1.19 billion. On an adjusted basis, diluted earnings per share (EPS) was 27 cents, on net income of $148 million.
The company said technical apparel revenue rose 28 percent to $633 million, while outdoor performance gained 25 percent to $502 million. Ball and racquet sports rose 12 percent to $306 million. The company said its operating profit increased 97 percent to $214 million, while gross margin rose 350 basis points to 57.8 percent.
Year-over-year inventories rose 15 percent to $1.27 billion, while net debt was $515 million and cash and cash equivalents totaled $422 million at the end of the quarter.
“We began 2025 with a great performance in the first quarter, and that momentum has continued into the second quarter. Led by Arc’teryx and Salomon footwear, our unique portfolio of premium technical brands continues to create white space and take market share in sports and outdoor markets around the world,” CEO James Zheng said in a statement. “Given macro uncertainty related to U.S. import tariff rates, we are operating our business with discipline and flexibility. We are confident in our position to manage through a variety of tariff outcomes given our premium brands with pricing power, strong secular growth trends, and relatively low U.S. revenue exposure.”
CFO Andrew Page said the company’s underlying business momentum “positions us well” to navigate rising tariffs. The raised guidance for 2025 presumes that the current reduced tariff rates in place during the 90-day freeze remains in place for the balance of the year. He said the company already has mitigation strategies in place, and that the impact from high tariffs should be negligible for the year. He noted that should the strong sales trends continue, and better-than-anticipated demand materialize, the company could deliver earnings results ahead of current expectations.
