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Amer Sports Reports Fourth Quarter and Fiscal Year 2024 Financial Results

Strong quarter with sales, adjusted margins and EPS above guidance Revenue increased 23% to $1.6 billion
Arc’teryx global momentum expanded, including an omni-comp acceleration as Salomon Softgoods growth accelerated across every region
Continued strong results in Greater China and Asia Pacific plus accelerating growth in both North America and EMEA
Successful capital raise and strong free cash flow enabled significant debt pay down

CEO James Zheng commented, “ 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. Given the strong sports and outdoor trend globally and our still underpenetrated brands, I am confident that our talented management team is well positioned to deliver strong results in 2025 and beyond. ”

FOURTH QUARTER 2024 RESULTS

Revenue increased 23% to $1,636 million with Technical Apparel increasing 33% to $745 million, reflecting an omni-comp growth of 29%, Outdoor Performance increased 13% to $594 million and Ball & Racquet Sports increased 22% to $296 million.

Selling, general and administrative expenses increased 13% to $732 million; Operating profit increased 224% to $194 million. Operating margin increased 730 basis points to 11.8%.

Net income increased 117% to $15 million

FISCAL YEAR 2024 RESULTS
For the fiscal year 2024, compared to fiscal year 2023:

Revenue increased 18% to $5,183 million. Technical Apparel increased 36% to $2,194 million, This reflects an omni-comp2 growth of 28%. Outdoor Performance increased to $1,836 million,

Gross margin increased 290 basis points to 55.4%; Selling, general and administrative expenses increased 21% to $2,430 million; Operating profit increased 56% to $471 million.

Operating margin increased 220 basis points to 9.1%.

Technical Apparel increased 150 basis points to 21.0%. Outdoor Performance increased 40 basis points to 9.4%. Ball & Racquet Sports decreased 70 basis points to 2.1%.

Net income increased 135% to $73 million,

OUTLOOK

CFO Andrew Page said, “With over 20% revenue growth, healthy margin expansion, significant free cash flow generation, and the transformation of our capital structure, the fourth quarter of 2024 marked a financial turning point in Amer Sports’ journey. 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”

FULL-YEAR 2025

Amer Sports provided  the following guidance for the year ending December 31, 2025

Reported revenue growth: 13 – 15%, which assumes a 250 basis point drag from unfavorable Fx impact at current exchange rates
Gross margin: 56.5 – 57.0%
Operating margin: 11.5 – 12.0%