Amer Sports (AS) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong results, with revenue, margin, and EPS all exceeding guidance, led by Arc'teryx and robust global market share gains, especially in Greater China and APAC.

• Revenue grew 16% year-over-year to $1.0B, with Arc'teryx and Technical Apparel leading growth and significant momentum in DTC channels.

• Full-year guidance for sales, adjusted operating margin, and EPS was raised, reflecting confidence in continued brand momentum and disciplined inventory management.

• Global end markets remain healthy, with Greater China sales up 54% and strong performance in premium sports and outdoor brands.

• Salomon and Wilson brands contributed to growth, with new product launches and retail expansion.

Financial highlights

• Q2 sales up 16% year-over-year to $1.0B (18.3% constant currency), led by Technical Apparel and Outdoor Performance.

• Adjusted gross margin rose 200–220 bps to 55.8%; adjusted operating margin increased 50 bps to 2.9%.

• Adjusted net income was $25M–$27M vs. a net loss of $86M last year; adjusted diluted EPS was $0.05 vs. a loss of $0.22.

• DTC channel revenue grew 40%, with group wholesale revenues up 2% year-over-year.

• Inventory up only 2% year-over-year, well below 16% sales growth; net debt at $1.8B–$1.82B.

Outlook and guidance

• Full-year 2024 guidance: revenue growth 15–17%, gross margin ~54.5%, operating margin toward 10.5–11.0%, and adjusted diluted EPS of $0.40–$0.44.

• Q3 2024 guidance: revenue growth 12–13%, gross margin ~54.0%, operating margin 11–12%, and EPS $0.08–$0.10.

• Technical Apparel expected to grow revenue >30% for the year, with segment margin slightly above 20%.

• Outdoor Performance expected mid-to-high single-digit growth and high single-digit margin; Ball & Racquet low-to-mid single-digit growth and margin.

• D&A for FY24 expected at ~$250M; net finance cost $200M–$220M.