Amer Sports, the parent of the Arc’teryx, Armada, Atec, Atomic, Demarini, Evoshield, Louisville Slugger, Peak Performance, Salomon, and Wilson Sports businesses, reported revenue for the 2025 fourth quarter amounted to $2.10 billion, a year-over-year (y/y) increase of 28 percent in reported terms, or a 26 percent increase in constant-currency (cc) terms.

CEO James Zheng commented, “Fourth quarter was a great finish to a breakout year for Amer Sports led by our flagship Arc’teryx brand and rising star Salomon, which surpassed the $2 billion sales mark. In 2025 we delivered 27 percent revenue growth and more than 150 basis points of operating margin expansion, with double-digit growth across all segments, regions, and channels.”

Technical Apparel segment revenues, which include Arc’teryx and Peak Performance, increased 34 percent (+34 percent cc) y/y to $1.0 billion. Omni-comp growth, which reflects year-over-year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months, was 16 percent for the quarter.

Outdoor Performance segment revenues, which include the Salomon and Atomic brands, increased 29 percent (+23 percent cc) y/y to $764 million.

Ball & Racquet Sports segment revenue, which includes the Wilson and Louisville Slugger brands, increased 14 percent (+13 percent cc) to $337 million.

Profitability and Expenses Summary
Gross margin increased 160 basis points y/y to 57.7 percent; Adjusted gross margin increased 140 basis points to 57.8 percent.

Selling, general and administrative (SG&A) expenses increased 35 percent y/y to $988 million; Adjusted SG&A expenses increased 35 percent to $956 million.

Operating profit increased 18 percent y/y to $228 million; Adjusted operating profit increased 18 percent to $263 million. Operating margin decreased 90 basis points y/y to 10.9 percent. Adjusted operating margin decreased 110 basis points to 12.5 percent. Adjusted operating margin by segment:

  • Technical Apparel increased 160 basis points to 25.9 percent.
  • Outdoor Performance decreased 490 basis points to 6.2 percent.
  • Ball & Racquet Sports increased 110 basis points to negative 2.6 percent.

Net income attributable to equity holders of the company increased 752 percent y/y to $132 million, or 23 cents per diluted earnings per share. Adjusted net income attributable to equity holders of the company increased 94 percent y/y to $176 million, or 31 cents per diluted share.

Fiscal Year 2025 Summary
Revenue increased 27 percent (+ 26 percent cc) to $6.57 billion. Revenues by segment:

    • Technical Apparel increased 30 percent (+31 percent cc) to $2.86 billion. This reflects an omni-comp growth of 19 percent.
    • Outdoor Performance increased 31 percent (+29 percent cc) to $2.40 billion.
    • Ball & Racquet Sports increased 13 percent to $1.31 billion.
  • Gross margin increased 220 basis points to 57.6 percent; Adjusted gross margin increased 230 basis points to 58.0 percent.
  • SG&A expenses increased 28 percent to $3,105 million; Adjusted SG&A expenses increased 28 percent to $3.00n billion.
  • Operating profit increased 49 percent to $702 million, and Adjusted operating profit increased 45 percent to $838 million for the year. Operating margin increased 160 basis points y/y to 10.7 percent of revenue. Adjusted operating margin increased 170 basis points to 12.8 percent of revenue.

Adjusted operating margin by segment:

  • Technical Apparel increased 60 basis points to 21.6 percent.
  • Outdoor Performance increased 310 basis points to 12.5 percent.
  • Ball & Racquet Sports increased 155 basis points to 3.6 percent.
  • Net income attributable to equity holders of the company increased 489 percent y/y to $427 million, or 76 cents per diluted share.
  • Adjusted net income attributable to equity holders of the company increased 131 percent y/y to $545 million, or 97 cents per diluted share in 2025.

Balance Sheet Summary
Net debt at year-end was $291 million, and cash and cash equivalents totaled $652 million at year-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 inventories increased 33 percent to $1.62 billion at year-end.

Company CFO Andrew Page noted, “We had another strong performance in Q4 with healthy sales growth, gross margin expansion, and EPS despite our decision to accelerate investment behind Salomon. The strong sales and profitability profile of the broader Amer portfolio gives us the flexibility to accelerate resources behind the large Salomon Softgoods opportunity, while still delivering great results at the Group level.

“Ending 2025 with only 0.3x net leverage and more than $700 million operating cash flow, we believe our financial foundation has never been stronger. Looking ahead, given the continued momentum from our highest-margin Arc’teryx franchise, accelerating Salomon footwear growth, plus the solid foundation of our equipment franchises, we are confident in our ability to deliver another strong financial performance in 2026.”

Full-Year Outlook
For full year 2026, Amer Sports expects Group corporate expenses to increase by approximately 60 basis points, or approximately $50 million, related to these reallocations.

Amer Sports is providing the following guidance for the year ending December 31, 2026. All guidance figures reference adjusted amounts.

  • Reported revenue growth: 16 percent to 18 percent. Assumes an approximate 200 basis point benefit from favorable FX impact at current exchange rates
  • Gross margin: approximately 59.0 percent
  • Operating margin: 13.1 percent to 13.3 percent
  • Other operating income: approximately $20 million
  • Non-controlling interest: approximately $15 million
  • Net finance cost: $105 million to 110 million
  • Effective tax rate: approximately 28 percent
  • Fully diluted share count: approximately 564 million
  • Fully diluted EPS: $1.10 to $1.15 per share
  • D&A: approximately $400 million, including approximately $170 million of ROU depreciation
  • CapEx: approximately $400 million
  • Corporate expense: approximately $225 million

Technical Apparel
Revenue growth of 18 percent to 20 percent y/y
Segment operating margin of 22.0 percent of revenue

Outdoor Performance
Revenue growth of 18 percent to 20 percent y/y
Segment operating margin of 14.5 percent to 14.8 percent of revenue

Ball & Racquet
Revenue growth of 7 percent to 9 percent y/y
Segment operating margin of 4.7 percent to 5.0 percent of revenue

First Quarter 2026 Outlook
Amer Sports provided the following guidance for the first quarter ending March 31, 2026. All guidance figures reference adjusted amounts.

  • Reported revenue growth: 22 percent to 24 percent y/y. Assumes an approximate 500 basis point benefit from the favorable FX impact at current exchange rates.
  • Gross margin: approximately 59.0 percent
  • Operating margin: 14.0 percent to 14.5 percent
  • Net finance cost: approximately $27 million
  • Effective tax rate: approximately 28 percent
  • Fully diluted share count: approximately 564 million
  • Fully diluted EPS: 28 cents to 30 cents per share

 Image courtesy Amer Sports