Amer Sports, Inc. CEO James Zheng said the parent of Arc’teryx, Salomon, Peak Performance, and Wilson Sports saw global momentum continue through the second quarter with over 30 percent revenue growth and strong operating margin expansion.

“All segments, geographies, and channels achieved strong double-digit growth led by another exceptional quarter from Salomon Softgoods, a strong Arc’teryx omni-comp, and a Wilson Tennis 360 acceleration,” Zheng noted.

“Given the broad-based momentum across our portfolio, the healthy and growing premium sports and outdoor market, and the world class teams we have in place around the world, I am very confident in the future outlook for Amer Sports.”

The strong quarter encouraged the company to raise full-year revenue, margin, and EPS guidance.

Second Quarter Summary
Revenue increased 32 percent year-over-year (y/y) to $1.63 billion, representing growth of 30 percent on a constant-currency (CC) basis and 32.1 percent growth on a reported basis.

Channel Summary

Segment Summary

  • Technical Apparel revenues, anchored by Arc’teryx, increased 32 percent (+30 percent CC) y/y to $674 million, reflecting omni-comp growth of 17 percent. Omni-comp reflects year-over-year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months.
  • Outdoor Performance revenues, predominantly representing Salomon brand sales, increased 37 percent (+35 percent CC) y/y to $569 million. Editor’s Note – For more on the Outdoor Performance segment and the Salomon brand, see additional coverage at the bottom of this article.
  • Ball & Racquet Sports (Wilson) revenues, increased 24 percent (+23 percent CC) to $390 million in the second quarter.

Profitability & Expenses
Gross margin increased 710 basis points y/y to 65.6 percent of revenue, including a benefit of 390 basis points from net tariff refunds. Adjusted gross margin increased 710 basis points y/y to 65.8 percent, including a benefit of 390 basis points from net tariff refunds.

Selling, general and administrative (SG&A) expenses increased 30 percent y/y to $909 million. Adjusted SG&A expenses increased 33 percent y/y to $897 million in Q2.

Operating profit increased 339 percent y/y to $192 million and Operating margin increased 820 basis points to 11.7 percent of revenue in the second quarter, including a benefit of 390 basis points from net tariff refunds.

Adjusted operating profit increased 209 percent y/y to $208 million. Adjusted operating margin increased 730 basis points to 12.8 percent of revenue in Q2, including a benefit of 390 basis points from net tariff refunds.

Adjusted operating margin by segment:

  • Technical Apparel increased 470 basis points y/y to 18.8 percent of revenue, including a benefit of 170 basis points from net tariff refunds.
  • Outdoor Performance increased 800 basis points y/y to 14.6 percent of revenue, including a benefit of 270 basis points from net tariff refunds.
  • Ball & Racquet Sports increased 1,300 basis points y/y to 17.2 percent of revenue, including a benefit of 970 basis points from net tariff refunds.

Net income attributable to equity holders of the company increased 489 percent y/y to $107 million, or 18 cents per diluted share.

Adjusted net income attributable to equity holders of the company increased 252 percent y/y to $127 million, or 22 cents Adjusted diluted earnings per share. Net income includes a benefit of $50.1 million from tariff refunds, net of the release of capitalized tariff costs, specific inventory reserves, and estimated reimbursements to vendors.

Balance Sheet Summary
Cash and cash equivalents totaled $720 million at quarter-end.

Year-over-year inventories increased 19 percent to $1,897 million at quarter-end.

Net cash was $573 million at quarter-end. Net cash is defined as cash and cash equivalents, less the principal value of non-current borrowings, the revolving credit facility and other borrowings.

Outlook
Company CFO Andrew Page noted, “We had another great financial performance in the second quarter across the P&L, with strong sales, margins, and EPS. The investments we have been making are paying off in the form of strong momentum across our three largest opportunities: Arc’teryx, Salomon Softgoods, and Wilson Tennis 360. And we will continue to reinvest behind these early-stage growth engines to ensure high quality long-duration growth and strong brand equity over the long term.

“Looking ahead, the strong position of our brands, great execution by our teams, and healthy demand trends in the market, give us the confidence to raise our full year 2026 sales, margin, and EPS guidance.”

Full-Year 2026 Outlook
Amer Sports is increasing guidance for the year ending December 31, 2026 (all guidance figures reference Adjusted amounts). Guidance assumes that the most recently announced Section 301 tariff rates remain in place for the remainder of 2026.

  • Reported revenue growth: ~24 percent, which assumes a 200 to 250 basis-point currency benefit at current exchange rates;
  • Gross margin: 60.5 to 61.0 percent of revenue;
  • Operating margin: 14.2 – 14.5 percent;
  • Net finance cost: ~$85 million;
  • Effective tax rate: ~28 percent;
  • Other operating income will be ~$43 million, and non-controlling interest ~$30 million;
  • Fully diluted share count: ~585 million;
  • Fully diluted EPS: $1.27 – $1.30 per share;
  • D&A: approximately $450 million, including ~$220 million of ROU depreciation;
  • CapEx: ~$400 million; and
  • Corporate expenses: ~$240 million.

Segment Outlook:

Technical Apparel:

  • Revenue growth of 25 percent to 26 percent
  • Segment operating margin ~22.5 percent of revenue

Outdoor Performance:

  • Revenue growth of 27 percent – 28 percent
  • Segment operating margin 16.0 percent to 16.5 percent of revenue

Ball & Racquet:

  • Revenue growth of ~14 percent
  • Segment operating margin 6.7 percent to 7.2 percent of revenue

Third Quarter 2026 Outlook

  • Reported revenue growth: 18 to 20 percent, assuming an ~50 basis point currency benefit at current exchange rates;
  • Gross margin: ~59.0 percent;
  • Operating margin: 13.5 to 14.0 percent;
  • Net finance cost: $15 to $20 million;
  • Effective tax rate: ~28 percent;
  • Fully diluted share count: ~590 million; and
  • Fully diluted EPS: 31 cents to 33 cents per share.

Image courtesy Arc’teryx/Amer Sports

See below for additional SGB Executive coverage of the Outdoor Performance segment and the Salomon brand:

EXEC: Salomon Brand Strength in Q2 Led by China and DTC Expansion