TLDR
- Amer Sports stock closed at $37.37, rising 19% after strong Q1 results.
- Q1 revenue jumped 23% to $1.47 billion, beating expectations.
- Adjusted EPS came in at $0.27, up from $0.09 last year.
- Growth driven by Arc’teryx, Salomon, and Wilson Tennis.
- Company raised full-year revenue and EPS guidance despite tariffs.
Amer Sports Inc. (NYSE: AS) shares surged 19.05% to $37.37 at market close on May 20, 2025, after the company posted stronger-than-expected first-quarter results and raised its full-year guidance.
The performance was led by premium outdoor and technical apparel brands such as Arc’teryx and Salomon, with sales momentum continuing into Q2.
CEO James Zheng highlighted robust demand across categories and regions, supported by brand strength and pricing power, while reaffirming the company’s flexible approach to managing tariff uncertainties.
Strong Segment Growth Across the Board
First-quarter revenue rose 23% year-over-year to $1.47 billion, or 26% on a constant currency basis. Growth was broad-based across key segments:
- Technical Apparel sales rose 28% to $664 million, with a 32% increase in constant currency, and a 23.8% segment operating margin.
- Outdoor Performance revenue grew 25% to $502 million, with a strong 14.7% segment margin.
- Ball & Racquet Sports climbed 12% to $306 million, led by Wilson Tennis, and delivered a 6.6% segment margin.
Adjusted operating income jumped 79% to $232 million, with margins expanding 490 basis points to 15.8%. Net income soared from $5 million to $135 million, while adjusted EPS reached $0.27, well above prior-year figures.
Raised Full-Year and Q2 Outlook
Despite continued pressure from 30% tariffs on imports from China and 10% on goods from other countries, Amer Sports raised its 2025 revenue and EPS forecast.
For the full year:
- Revenue is expected to grow 15% to 17%.
- Adjusted EPS is guided between $0.67 and $0.72.
- Gross margin is forecast at 56.5% to 57%, with operating margin between 11.5% and 12%.
For Q2 2025, the company expects:
- Revenue growth of 16% to 18%.
- Gross margin of 57% to 58%.
- Operating margin between 3% and 4%.
- Adjusted EPS between $0.00 and $0.02.
CFO Andrew Page emphasized that Amer Sports is mitigating tariff impact through pricing strategies, vendor renegotiations, and supply chain optimization. He expressed confidence in the company’s ability to sustain growth despite macroeconomic uncertainty.
Strong Year-to-Date and Long-Term Returns
As of May 20, 2025, Amer Sports has delivered a year-to-date return of 33.66% and an impressive 133.13% return over the past year. Its three- and five-year returns stand at 178.88%, far outpacing the S&P 500.
Amer Sports is expected to report its next earnings on May 20, 2025.
