Amer Sports (AS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 23% year-over-year to $1,473 million, with adjusted margins and EPS exceeding expectations and strong momentum into Q2.

• Growth was broad-based, led by Arc'teryx and Salomon, with robust DTC and China/APAC performance, and Wilson Tennis 360 driving Ball & Racquet segment.

• Arc'teryx DTC up 19% omnicomp, Salomon sneakers surpassed $1B in 2024, and store network expanded, especially in Greater China.

• Full-year 2025 revenue and EPS guidance raised, assuming current tariffs remain in effect.

• Strong product launches and brand engagement initiatives supported ongoing momentum.

Financial highlights

• Adjusted gross margin increased to 58% (+330 bps YoY); adjusted operating margin up to 15.8% (+490 bps YoY).

• Adjusted net income rose to $148M (from $50M YoY); adjusted diluted EPS $0.27 (from $0.11 YoY).

• Technical apparel revenue up 28% to $664M; outdoor performance up 25% to $502M; ball and racket up 12% to $306M.

• Adjusted EBITDA margin expanded to 20.3% from 15.2% prior year.

• Net debt reduced to $515M, cash at $422M, and operating cash flow reached $422M.

Outlook and guidance

• Full-year 2025 guidance: revenue growth 15–17%, gross margin 56.5–57%, operating margin 11.5–12%, adjusted EPS $0.67–$0.72.

• Q2 2025 guidance: revenue growth 16–18%, gross margin 57–58%, operating margin 3–4%, adjusted EPS $0.00–$0.02.

• Technical apparel revenue growth guidance increased to 20–22%; outdoor performance to mid-teens; ball and racket to mid-single-digits.

• Guidance assumes U.S. tariffs on China at 30% and mitigation strategies expected to offset impact.

• CapEx for 2025 expected at $300M.