Amer Sports, Inc., the parent company of Arc’teryx, Peak Performance, Salomon, Atomic, Armada, Louisville Slugger, Atec, Evoshield, and Wilson Sports, reported that strong momentum continued in the 2025 third quarter, as the company’s “unique portfolio of premium technical brands” continues to create white space and take share in sports and outdoor markets around the world.

“All three segments performed extremely well led by exceptional Salomon footwear growth, an Arc’teryx omni-comp re-acceleration, and solid growth from Wilson Tennis 360 and our Winter Sports Equipment franchises,” offered company CEO James Zheng. “We believe our specialized, highly technical brands are well positioned within the premium sports and outdoor market, which continues to be one of the healthiest segments across the global consumer landscape.”

Third quarter revenue reportedly increased 30 percent year-over-year (y/y) to $1.76 billion, or growth of 28 percent on a constant-currency (cc) basis.

The Eastward Tilt Continues
Region growth rate was again driven by the combination of Greater China, which includes Mainland China, Hong Kong, Macau and Taiwan, and Asia Pacific, which does not include Greater China. Reading through the details of the most recent quarter and listening to management discuss the trend lines, may be concerning for anyone looking for balanced global growth. While 18 percent growth in the Americas looks pretty appealing in today’s market, the gap in growth rates between the Americas, Greater China and Asia Pacific may give one pause.

Still, Wall Street appears to be pleased with the direction as the company’s stock closed up 9.45 percent for the day on Tuesday, November 18.

Third Quarter Segment Trends
Segment growth rate was again driven by Salomon Footwear which is accelerating quickly toward Arc’teryx levels. Full-year forecasts continue to see this trend developing further.

Technical Apparel
Technical Apparel (Arc’teryx, Peak Performance) segment revenues increased 31 percent (+32 percent cc) y/y to $683 million. The increase, led by Arc’teryx, reportedly reflects omni-comp growth of 27 percent year-over-year.

Third quarter segment growth was said to be fueled by 46 percent DTC expansion, while Wholesale channel sales improved 11 percent y/y. Third quarter omni-comp share re-accelerated sequentially by quarter, to 27 percent of total net sales in Q3 2025 from 15 percent in Q2 2025.

The segment reported “strong growth” across all geographies, led by APAC, the Americas, Greater China, and EMEA.

The acquisition of the brand’s Korea partner closed during the quarter, and was said to have “negligible impact” for the period. On an annualized basis, Korea is expected to generate ~$120 million total sales at retail in 2025.

The adjusted operating margin for the segment declined 100 basis points (bps) year-over-year to 19.0 percent of segment net sales as SG&A leverage was offset by a ~125bps headwind from a timing shift related to government grants.

Arc’teryx opened four net new stores in Q3, excluding the Korea acquisition, and expects to open ~25 net new stores in 2025.

Outdoor Performance
The Outdoor Performance segment, which includes Salomon Footwear, Salomon Winter Sports Equipment, Atomic, and Armada revenues, increased 36 percent (+32 percent cc) y/y to $724 million in the third quarter. The growth was said to be driven by strong growth in Salomon Softgoods.

Segment DTC revenue grew 67 percent y/y, led by APAC and Greater China, and Wholesale growth accelerated to 26 percent year-over-year increase.

Regionally, sales growth rate was reportedly led by Greater China and APAC, followed by accelerating growth in both EMEA and the Americas.

Segment adjusted segment operating margin for Q3 expanded 420 bps to 21.7 percent of segment net sales in Q3, reportedly driven by strong gross margin expansion, which was partially offset by very slight SG&A deleverage.

Salomon executed on 29 net new Salomon brand store openings in the third quarter, with the majority in Greater China, Korea and Japan.

Ball & Racquet Sports
The Ball & Racquet Sports segment, which includes the Louisville Slugger, Atec, Evoshield, and Wilson Sports brands, increased 16 percent y/y to $350 million in the third quarter, which was said to be driven by strong growth in Softgoods and Racquet Sports. Beyond Racquet Sports, solid trends in Golf were offset by softer sales in Baseball, and Inflatables.

In Racquet Sports, Tennis 360 continued to experience very strong momentum across markets. The Dick’s Sporting Goods Tennis 360 test has reportedly continued to perform well.

The segment’s regional growth rate was reportedly led by China, followed by APAC, EMEA, and “slight growth” in the Americas.

Adjusted segment operating margin for the third quarter grew 70 bps y/y to 7.6 percent of segment net sales, said to be “thanks to strong gains in gross margin, offsetting higher tariff costs and slight SG&A deleverage.”

Wilson opened 10 net new brand stores in Q3, mostly in Greater China.

An Omni-Comp Primer
Amer Sports defines omni-comp as year-over-year revenue growth from owned-retail stores and e-commerce sites that have been open at least 13 months. Remodeled stores are excluded from the comparable sales growth calculation for 13 months if a store: (i) changes its square footage by more than 20 percent; or (ii) is closed for more than 60 days for the refit. Stores closed for 60 days or less are excluded from the comparable sales growth calculation only for the months they are closed

Stores

Profitability & Expenses Summary
Gross margin increased 160 basis points to 56.8 percent; Adjusted gross margin increased 240 basis points to 57.9 percent.

Selling, general and administrative expenses increased 32 percent to $777 million; Adjusted selling, general and administrative expenses increased 30 percent to $743 million.

Operating profit increased 22 percent to $216 million; Adjusted operating profit increased 41 percent to $275 million.

  • Operating margin decreased 80 basis points to 12.3 percent of net sales.
  • Adjusted operating margin increased 130 basis points to 15.7 percent.

Net income attributable to equity holders of the company increased 156 percent to $143 million, or 25 cents per diluted share, in the third quarter; Adjusted net income attributable to equity holders of the company increased 161 percent to $185 million, or 33 cents adjusted diluted earnings per share, in the quarter.

Balance Sheet Summary
Net debt at quarter-end was $800 million, and cash and cash equivalents totaled $353 million at quarter-end. Net debt is defined as the principal value of borrowings from financial institutions, including the revolving credit facility and other-borrowings, less cash and cash equivalents.

Year-over-year inventory levels increased 28 percent to $1.71 billion at quarter-end but continued to be outpaced by the strong double-digit sales growth.

Trend lines for sales growth versus inventory growth

Outlook
Company CFO Andrew Page said that Salomon footwear continues to add a strong second leg of profitable growth to Arc’teryx’s already “exceptional trajectory,” significantly elevating the financial profile and long-term value creation potential of the Amer Sports portfolio.

“All three operating segments delivered both sales and margin ahead of our expectations in the third quarter. Given our continued momentum we are raising our full year revenue, margin, and EPS expectations,” Page offered. “As we begin to look beyond this year, we expect to deliver 2026 Group revenue growth towards the high-end of our long-term algorithm of low-double-digit to mid-teens annual sales growth. And we expect to deliver adjusted operating margin expansion within our long-term algorithm of 30-70+ basis points annually.”

Amer Sports updated its guidance for the year ending December 31. Guidance assumes the latest tariff rates on all countries will stay in place for the remainder of 2025 and beyond:

  • Reported revenue growth: 23 percent – 24 percent, including an approximate 100 basis point benefit from favorable fx impact at current exchange rates
  • Gross margin: approximately 58 percent
  • Operating margin: 12.5 percent – 12.7 percent
  • Net finance cost: $85 – $90 million
  • Effective tax rate: 27 percent – 28 percent
  • Other operating income will be approximately $20 million, and non-controlling interest approximately $15 million
  • Fully diluted share count: approximately 563 million
  • Fully diluted EPS: $0.88 – 0.92
  • D&A: approximately $350 million, including approximately $180 million of ROU depreciation
  • CapEx: approximately $300 million

Segment Outlook

Technical Apparel (Arcteryx)
Revenue growth of 26 percent – 27 percent
Segment operating margin approximately 21 percent

Outdoor Performance (Salomon)
Revenue growth of 28 percent – 29 percent
Segment operating margin 13 percent – 13.5 percent

Ball & Racquet (Wilson Sports)
Revenue growth of 10 percent – 11 percent
Segment operating margin of 3 percent – 4 percent

Images courtesy Arcteryx/Amer Sports, Inc.