Amer Sports (AS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 23% year-over-year to $1,236 million, exceeding guidance, with strong results in sales, margin, and EPS, led by Arc'teryx and Salomon; Ball & Racquet also delivered sales and margin expansion.

• Full-year revenue, margin, and EPS guidance were raised due to strong first half and continued momentum, despite higher tariffs.

• Direct-to-consumer (DTC) channel grew 40–46%, led by Salomon in Greater China/APAC and Arc'teryx globally; wholesale grew 9%.

• Asia Pacific and Greater China led regional growth, up 45% and 42% respectively; EMEA up 18%, Americas up 6%.

• CEO transition at Wilson, with CFO Andrew Page named interim CEO.

Financial highlights

• Adjusted gross margin increased 250 bps to 58.7% in Q2, driven by favorable mix and lower discounts.

• Adjusted operating margin expanded 260 bps to 5.5%, aided by $19M in government grants.

• Adjusted net income was $36M (vs. $25M prior year); adjusted diluted EPS $0.06 (vs. $0.05 prior year).

• Adjusted EBITDA margin reached 11.1% in Q2 2025.

• Ended quarter with $640M net debt; net debt/adjusted EBITDA at 0.6x.

Outlook and guidance

• Raised 2025 revenue growth guidance to 20–21% (from 15–17%), with ~100 bps FX benefit.

• Technical apparel and outdoor performance revenue growth guidance increased to 22–25%; ball and racket to 7–9%.

• Adjusted gross margin guidance raised to ~57.5%; adjusted operating margin to 11.8–12.2%; adjusted EPS $0.77–0.82.

• Q3 revenue growth expected at ~20%, with adjusted EPS of $0.20–$0.22.

• Negligible group P&L impact expected from higher tariffs due to mitigation strategies.