Amer Sports CEO James recently Zheng dialed into the details of the company’s Ball & Racquet Sports (Wilson) segment results for the first quarter, providing additional color and insight on a conference call with analysts.
In his prepared remarks, Zheng said the company was “pleased” that the Ball & Racquet Sports segment, dominated by Wilson Sports but also includes DeMarini, Louisville Slugger, and ATEC, saw growth trends continue to be solid in Q1, with 12 percent growth year-over-year (y/y) to $306 million, said to be driven by strength in Sportswear, Racquet Sports, and Golf.
“The strong growth was also helped by easier comparisons from Q1 last year when Wilson was still going through some liquidations to normalize inventory levels,” added company CFO Andrew Page. “We are pleased with the continued rebound, but would caution that double-digit growth is not sustainable long-term, and we continue to expect Ball & Racquet to grow low- to mid-single digits long term.”
The Tennis 360 program from Wilson continues to resonate very well with consumers, from performance racquets to softgoods, “especially in Greater China,” Zheng noted.
Zheng said that Wilson’s Performance Racquets business continues to shine, including the January launch of the Clash V3, which was said to be “off to a solid start.” In Pickleball, we are experiencing a strong response to our Vesper paddle launch.”
Zheng said that Wilson Tennis 360 softgoods, including footwear and apparel, also continued its excellent growth, “nearly doubling” in the first quarter.
Softgoods Strength
The segment’s overall growth for the quarter was said to be led by Softgoods, which now represents 10 percent of Ball & Racquet Sports segment sales, and the marquee racquet sports franchises.
“We have seen very strong response to the Intrigue women’s tennis shoe,” the CEO suggested.
“We continue to see very strong momentum in Tennis 360, especially in North America, Greater China and APAC. Golf achieved positive growth thanks to a successful Dynapower product launch, as well as improving sales in Pro Golf Clubs,” detailed CFO Page. He said Inflatables and Baseball were both roughly flat year-over-year for the period, as Baseball Bats returned to growth, offset by softer Ball Glove sales.
“Lastly, we were pleased to see Wilson Golf have a solid improvement in sales and margin in Q1 led by the Dynapower launch this Spring, which has received positive reviews in the golf influencer community,” the CEO shared.
Direct-to-Consumer
Zheng said the Ball & Racquet Sports segment continues to excel in China, and Amer will open approximately 50 more Wilson Tennis 360 shops in the country this year, including both owned and partner doors, bringing the total to almost 100 doors.
In North America, the new Tennis 360 concept store in the Dallas North Park Mall was “off to a very good start,” and he also called out the Tennis Footwear and Apparel test in 50 Dick’s Sporting Goods locations, where he claimed they are selling through better than the competitors.
Profitability
Ball & Racquet segment adjusted operating profit margin increased 270 basis points y/y to 6.6 percent, primarily driven by higher gross margin thanks to favorable product mix, channel and region mix. We had slight SG&A deleverage due to continued investments in Tennis 360 and DTC.
Outlook
Ball & Racquet Sports (Wilson) segment is forecasted to see revenue growth of mid-single digits in 2025, up from the prior guidance for low- to mid-single-digit growth for the year.
Segment operating margin is estimated at approximately 3 percent to 4 percent for the year.
Amer Sports Inc. posted record financial results for Q1 2025, which led the company to raise its consolidated full-year 2025 guidance.
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See below for additional SGB Executive coverage of Amer Sports and details for each brand and segment.
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