Amer Sports, the parent of the Arc’teryx, Armada, Atomic, DeMarini, EvoShield, Louisville Slugger, Salomon, Wilson, and other sports and outdoor brands, is estimating that total revenues for the 2023 full year will increase 22.7 percent to 23.0 percent to generate between $4.35 billion and $4.36 billion in revenue for the 12-month period ended December 31, 2023, compared to $3.55 billion for the year ended December 31, 2022.
Revenue reportedly increased across all operating segments, geographic regions and channels, according to Amer Sports’ recently amended F-1 filing statement. The Helsinki, Finland-based company recently filed for an initial public offering in the U.S. to raise $1.6 billion to $2.0 billion.
Revenue was said to be positively affected by strong growth in the company’s Technical Apparel segment, which includes the Arc’teryx brand, driven by new store openings, comparable store sales growth, e-commerce expansion, and a rebound in Greater China following the COVID-19 lockdowns in 2022.
The Outdoor Performance segment, dominated by Salomon and the company’s snow sports brands, also reportedly experienced healthy growth driven by footwear, the brands’ performance in Greater China, and the benefit of product supply normalization following the pandemic.
Ball & Racquet Sports revenues “rose more moderately” as growth in basketball and sportswear offset softer baseball and team sports sales, which led to targeted promotional actions in these categories to clear excess inventory in the fourth quarter. Wilson Sports, DeMarini Sports and Louisville Slugger drive the segment.
Amer Sports estimates that its net loss will contract between 7.4 percent and 19.3 percent for the year to fall into a range between $234.0 million and $204.0 million for the year ended December 31, 2023; this compares favorably to a loss of $252.7 million for the year ended December 31, 2022.
The net loss is said to be positively affected by an increase in revenue and improvements in gross margin; however, those gains were said to be partially offset by an increase in operating expenses, higher finance costs due to increased interest rates, recognition of share-based compensation expense and transaction costs relating to the offering.
The company estimates that its Adjusted EBITDA will be up between 31.8 percent and 34.0 percent to equal between $597.0 million and $607.0 million for the year ended December 31, 2023, compared to $453.0 million for the year ended December 31, 2022.
Adjusted EBITDA was positively affected by an increase in revenue and improvements in gross margin and was partially offset by an increase in operating expenses, according to the filing.
Image courtesy Amer Sports
