Amer Sports Lifts Full-Year Outlook After 2Q Revenue, Profit Growth

Dow Jones
08/18
 
 

Amer Sports raised its full-year targets after a surge in second-quarter revenue and profit, driven by growth at its flagship brands Arc'teryx and Salomon.

The sports and outdoor brands group, which also owns the Wilson and Peak Performance brands, on Tuesday said it now expects revenue growth to be about 24% over the prior year, which would be around $8.14 billion.

The company had previously guided for growth of between 20% and 22%, with analysts expecting $8.01 billion, according to FactSet.

Gross margin is also expected to be higher, in the range of 60.5% to 61%, up from previous targets of between 59% to 59.5%. Earnings per share guidance also got a boost, now projected to be between $1.27 and $1.30 a share, ahead of its previous forecast of $1.18 to $1.23 a share.

For the second quarter, Amer Sports reported a net income of $107.8 million, or 18 cents a share, compared with $18.2 million, or 0.03 a share, in the same quarter a year ago.

Among the drivers in the quarter was a $50.1 million net tariff refund.

Adjusted earnings were 22 cents a share. According to FactSet, analysts were expecting 11 cents a share.

Revenue rose 32% to $1.63 billion, analysts had expected a more modest rise to $1.54 billion.

Amer Sports benefited from strength across the board, with technical apparel rising 32%, outdoor performance rising 37%, and ball and racquet sports up 24%.

For the third quarter, the company expects revenue growth of between 18% and 20%, with gross margin of 59%. EPS is pegged at 31 cents to 33 cents.

 
 

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