Amer Sports (AS) Q4 2024 earnings summary

Executive summary

• Fourth quarter revenue rose 23% year-over-year to $1.64 billion, with all major brands and geographies contributing to growth and adjusted margins and EPS exceeding expectations.

• Full-year 2024 revenue increased 18% to $5.2 billion, with record adjusted operating margin expansion and strong performance across brands, channels, and regions.

• Arc'teryx surpassed $2 billion in sales, Salomon sneakers exceeded $1 billion, and Wilson regained #1 U.S. market share in performance rackets.

• Significant free cash flow enabled notable debt reduction, with leverage ratio declining sharply after a successful IPO and follow-on offering.

Financial highlights

• Q4 sales up 23% to $1.64 billion, with adjusted gross margin up 370 bps to 56.4% and adjusted operating margin up 330 bps to 13.6%.

• Adjusted net income was $90 million in Q4, compared to a $31 million loss last year; adjusted diluted EPS was $0.17 vs. $(0.08) prior year.

• Adjusted EBITDA margin for Q4 was 17.7%, up from 14.2% in Q4 2023.

• Net debt reduced to $591 million at year-end, down from $1.99 billion at Q3, supported by $425 million operating cash flow and $150 million free cash flow in 2024.

Outlook and guidance

• FY25 revenue growth expected at 13–15%, with a 250 bps FX headwind; technical apparel to grow ~20%, outdoor performance low double digits, Ball & Racquet low to mid single digits.

• Adjusted gross margin guided at 56.5–57.0%, operating margin at 11.5–12.0%, and adjusted diluted EPS of $0.64–$0.69.

• Q1 2025 revenue growth expected at 14–16% (300 bps FX drag), with adjusted EPS of $0.14–$0.15.

• CapEx for 2025 expected at ~$300 million, in line with 2024.