Outdoor Apparel Giant Amer Sports Raises Outlook

Benzinga05-20 01:20

Amer Sports, Inc. (NYSE:AS) shares rose Tuesday after the company reported first-quarter earnings and revenue that topped Wall Street estimates, fueled by strong demand across its technical apparel and outdoor categories.

The company also raised its full-year sales and earnings outlook, citing continued momentum in its Arc’teryx and Salomon businesses and expanding margins.

Amer Sports First-Quarter Results Beat Estimates

Amer Sports reported first-quarter adjusted earnings of 38 cents per share, above the analyst consensus estimate of 30 cents. Revenue climbed 32% year over year to $1.946 billion, exceeding Wall Street expectations of $1.835 billion.

Technical apparel revenue increased 33% during the quarter, supported by growth across regions, product categories and sales channels. Omni-channel comparable sales rose 19%.

Outdoor Performance revenue jumped 42% to $714 million, while Ball & Racquet Sports revenue increased 13% to $347 million.

Higher Margins Support Profit Growth

Adjusted gross margin expanded 200 basis points to 60%. Adjusted selling, general and administrative expenses rose 34% to $841 million.

The adjusted operating profit increased 46% to $339 million, while adjusted operating margin expanded 160 basis points to 17.4%.

Amer Sports said inventories rose 33% year over year to $1.688 billion. Net cash totaled $539 million, while cash and cash equivalents stood at $684 million at the end of the quarter.

Chief Financial Officer Andrew Page said, “Looking ahead, given the momentum from our highest-margin Arc’teryx franchise, accelerating Salomon Softgoods growth, plus the solid foundation of our equipment franchises, we have the confidence to raise our 2026 sales, margin, and EPS guidance.”

Amer Sports Raises Full-Year Outlook

Amer Sports raised its 2026 GAAP earnings guidance to $1.18 to $1.23 per share from prior guidance of $1.10 to $1.15 per share. The updated range came in above the analyst estimate of $1.17 per share.

The company also increased its 2026 revenue forecast to a range of $7.879 billion to $8.011 billion, up from prior guidance of $7.617 billion to $7.748 billion. Analysts were expecting $7.760 billion.

For the second quarter, Amer Sports forecast GAAP earnings of 8 cents to 10 cents per share, compared with analyst estimates of 8 cents per share.

The company projected second-quarter revenue of $1.508 billion to $1.533 billion, above the consensus estimate of $1.488 billion.

AS Price Action: Amer Sports shares were up 4.83% at $34.75 at the time of publication on Tuesday, according to Benzinga Pro data.

Photo via Shutterstock

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