Amer Sports, Inc., parent of the Arc’teryx, Salomon and Wilson Sports brands, among others, reported that 2025 first-quarter revenue increased 23 percent to $1.47 billion, a year-over-year (y/y) increase of 26 percent on a constant-currency (cc) basis. The company raised revenue and EPS expectations, assuming current tariffs remain in effect for the rest of the year.

Channel Revenues

“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,” offered company CEO James Zheng.

Region Revenues

“Given macro uncertainty related to U.S. import tariff rates, we are operating our business with discipline and flexibility,” Zheng continued. “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.”

Segment Revenues

Technical Apparel, which includes the Arc’teryx and Peak Performance brands, increased 28 percent (+32 percent cc) year-over-year, generating $664 million in the first quarter. The company said strong trends at Arc’teryx continue across regions, channels and categories.

Income Statement Summary

  • Gross margin increased 350 basis points to 57.8 percent; Adjusted gross margin increased 330 basis points to 58.0 percent.
  • Selling, general and administrative (SG&A) expenses increased 18 percent to $642 million; Adjusted SG&A expenses increased 19 percent to $627 million.
  • Operating profit increased 97 percent to $214 million; Adjusted operating profit increased 79 percent to $232 million.

  • Operating margin increased 540 basis points y/y to 14.5 percent of net sales. Adjusted operating margin increased 490 basis points to 15.8 percent in Q1.
  • Net income increased to $135 million, or 24 cents per diluted share, compared to net income of $5 million in Q1 2024; Adjusted net income increased from $50 million to $148 million, or 27 cents diluted earnings per share.

Balance Sheet Summary

  • Cash and cash equivalents totaled $422 million at quarter end.
  • Inventories increased 15 percent y/y to $1.27 billion at quarter end.
  • Net debt was $515 million at quarter end. Net debt is the principal value of borrowings from financial institutions, including the revolving credit facility and other borrowings, less cash and cash equivalents.

Outlook
Amer Sports CFO Andrew Page said the company’s underlying business momentum, diverse global footprint, clean balance sheet, and strong pricing power position it well to navigate rising tariffs and associated macro uncertainties.

“Given the upside in the first quarter and our continued operating and financial momentum — and despite higher tariffs — we are raising our full year revenue and EPS expectations,” Page continued. “This updated guidance assumes that the current 30 percent tariff on goods arriving in the U.S. from China and 10 percent tariff on all other countries will stay in place for the remainder of 2025. Given the mitigation strategies we already have underway, we expect the impact on our P&L from higher tariffs to be negligible this year. And as we’ve said before, should strong trends continue and better-than-anticipated demand materialize, we believe we are well positioned to deliver financial performance ahead of these expectations.”

Looking beyond 2025, Page said the company believes it will be able to offset the vast majority of higher import tariffs under a wide range of scenarios through “pricing, vendor renegotiation, and supply chain maneuvers.”

Full-Year 2025 Outlook
Amer Sports is updated guidance for the year ending December 31, 2025, with all guidance figures referencing adjusted amounts. Guidance assumes U.S. tariffs on imports from China remain at 30 percent and Rest-of-World at 10 percent for the remainder of the year:

  • Reported revenue growth: 15 percent to 17 percent
  • Gross margin: 56.5 percent to 57 percent
  • Operating margin: 11.5 percent to 12 percent
  • Net finance cost: approximately $120 million
  • Effective tax rate: 30 percent to 32 percent
  • Fully diluted share count: approximately 560 million
  • Fully diluted EPS: 67 cents to 72 cents per share
  • D&A: roughly $350 million, including approximately $180 million of ROU depreciation
  • CapEx: approximately $300 million.

Technical Apparel (Arc’teryx)

  • Revenue growth of 20 percent to 22 percent
  • Segment operating margin of approximately 21 percent

Outdoor Performance (Salomon)

  • Revenue growth of mid-teens percent
  • Segment operating margin of approximately 9.5 percent

Ball & Racquet (Wilson)

  • Revenue growth of mid-single-digits
  • Segment operating margin of approximately 3 percent to 4 percent

Second Quarter 2025 Outlook
Amer Sports provided guidance for the second quarter ending June 30, 2025 (all guidance figures reference adjusted amounts). Guidance assumes U.S. tariffs on imports from China remain at 30 percent and Rest-of-World at 10 percent for the remainder of the year.

  • Reported revenue growth: 16 percent to 18 percent
  • Gross margin: 57 percent to 58 percent
  • Operating margin: 3 percent to 4 percent
  • Net finance cost: $25 million to 30 million;
  • Effective tax rate: 30 percent to 32 percent;
  • Fully diluted share count: approximately 560 million
  • Fully diluted EPS: $0.00 to 2 cents per share

Image courtesy Wilson Sports