Amer Sports (AS) delivered strong double-digit omnichannel comparable growth across all segments, but a higher-than-expected SG&A outlook could weigh on sentiment, although UBS Securities said it does not derail the company's long-term revenue growth and EBIT margin potential.

The company raised its 2026 EPS guidance to $1.27 to $1.30 from $1.18 to $1.23 previously, including an estimated $0.085 contribution from tariff refunds. The brokerage said in a Tuesday note that it believes the Street's EPS estimate could increase 2% to 3% from the prior view.

After adjusting for the tariff refund, the company's gross margin guidance for the year appears set to increase to 59.7% to 60.2% from 59.0% to 59.5%, which would be above expectations. UBS said the main downside to expectations appears to be from a higher SG&A outlook.

Amer Sports' Q3 EPS guidance of $0.31 to $0.33 was below the Street's $0.39 view, while its sales outlook was above consensus and its EBIT margin guidance was below expectations. UBS said the market could focus more on the higher SG&A outlook than the better-than-expected sales outlook.

UBS has a buy rating on Amer Sports with a price target of $62.

Shares of Amer Sports were up 2.5% in Wednesday trading.

Price: 34.46, Change: +0.84, Percent Change: +2.50