Amer Sports Inc (AS) Q2 2025 Earnings Call Highlights: Strong Sales Growth and Margin Expansion

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Sales Growth: 23% increase in Q2, or 22% excluding currency impact. Adjusted Operating Margin: Expanded by 260 basis points to 5.5% in Q2. Adjusted Gross Margin: Increased 250 basis points to 58.7% in Q2. Adjusted Net Income: $36 million in Q2, up from $25 million in the prior year. Adjusted Diluted EPS: $0.06 compared to $0.05 last year. Technical Apparel Revenue: Increased 23% to $509 million, led by Arc'teryx. Outdoor Performance Revenue: Increased 35% to $414 million, driven by Salomon. Ball & Racquet Revenue: Increased 11% to $314 million. Direct-to-Consumer Growth: 40% increase, led by Salomon in Greater China and APAC. Wholesale Growth: 9% increase at the group level, led by Salomon. Regional Growth: Asia Pacific up 45%, China up 42%, EMEA up 18%, Americas up 6%. Net Debt: $640 million at the end of Q2. Inventory Growth: Up 29% year-over-year, driven by Arc'teryx. Operating Cash Flow: $108 million generated in the first half of 2025. Store Openings: Arc'teryx opened 7 net new stores in Q2; Salomon opened 16 net new shops in Greater China.

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Release Date: August 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Amer Sports Inc (NYSE:AS) reported a strong 23% sales growth in Q2 2025, with a 22% increase excluding currency impacts. The company expanded its adjusted operating margin by 260 basis points, driven by strong performance in Outdoor Performance and Technical Apparel segments. Arc'teryx and Salomon brands showed significant momentum, with Arc'teryx achieving a 15% omni-comp growth and Salomon experiencing a global acceleration. Direct-to-consumer (DTC) channels grew by 40%, led by Salomon in Greater China and APAC, as well as Arc'teryx globally. Amer Sports Inc (NYSE:AS) raised its full-year revenue and EPS expectations, reflecting confidence in managing tariff impacts and continued operational momentum.

Negative Points

Higher tariffs, particularly in the Ball & Racquet segment, are expected to have a slightly higher impact than previously anticipated. The Americas region showed slower growth at 6%, attributed to normalizing growth in Ball & Racquet and a tougher comparison due to prior year shipment shifts. Inventory levels increased by 29% year-over-year, driven by early receipt of merchandise and higher goods in transit, which may pose challenges if not managed effectively. The Ball & Racquet segment's long-term growth is expected to slow to low to mid-single digits, despite current solid performance. The company faces ongoing challenges in managing outlet sales, which have been a drag on overall comp performance for Arc'teryx.

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Q & A Highlights

Q: Could you elaborate on the momentum that you're seeing in the third quarter, supporting the 20% outlook? Speak to drivers of the growth inflection at Salomon and the accelerated back half opportunity. A: James Zheng, CEO: Based on strong Q2 results, our growth momentum continues into Q3, especially for Salomon footwear. We've created a unique category called outdoor sneakers, giving us a competitive edge, particularly among younger female consumers. Arc'teryx is also on the right track, and Wilson's Tennis 360 formats are showing clear growth patterns, especially in China and Southeast Asia.

Q: Can you speak to the next levers of growth at the Salomon brand following the recent inflection? How should we be thinking about the pace and magnitude of additional distribution point expansion in the US relative to your other key international regions? A: James Zheng, CEO: Salomon is on a fast-growing pattern, driven by strong momentum in China, Asia Pacific, and EMEA. In the US, we're building the foundation with plans to open 4 to 5 shops by year-end in key cities. We're also strengthening our B2B business with top accounts like REI and Nordstrom.

Q: What type of price increases are you embedding to mitigate the tariffs? And what has the customer response been to those? A: Andrew Page, CFO: We've leaned into some pricing increases, particularly in the Wilson brand, approximately 10% for certain products. For Salomon and Arc'teryx, we have untapped pricing flexibility and have managed to mitigate tariff impacts without raising prices thus far.

Q: Can you talk about how Arc'teryx stores are comping the full-price stores versus how much of a drag you're seeing on comp from the outlet stores? A: Stuart Haselden, CEO of Arc'teryx: Full-price stores are showing robust trends, with outlet sales declines causing a mid-single-digit drag on overall comps. We're happy to see a stronger full-price mix, which benefits our margins.

Q: Can you unpack the 20% growth implied for Outdoor Performance in the second half? Any nuances between 3Q and 4Q revenues, especially heading into the Winter Olympics? A: Andrew Page, CFO: The 20% growth in Outdoor Performance is consistent between the third and fourth quarters. Winter Sports Equipment will continue to grow at low single digits for the rest of the year.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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