Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative stock price return of over 20% within the next six months [10]. Core Insights - The company reported strong Q1 FY25 results with revenue of $1.5 billion, a year-on-year increase of 26%, and adjusted net income of $150 million, up 196% year-on-year [1]. - The company has raised its full-year guidance for FY25, projecting revenue growth of 15-17% and adjusted EPS of $0.67-$0.72 [3][4]. - The outdoor performance segment showed significant improvement, with the Greater China region leading growth at 43% year-on-year [2]. Summary by Sections Financial Performance - Q1 FY25 revenue reached $1.5 billion, with an adjusted gross margin of 58% and an adjusted operating profit margin (OPM) of 16% [1]. - Adjusted net income for Q1 was $150 million, translating to a diluted EPS of $0.27 [1]. Segment Performance - By category, technical apparel revenue was $700 million (+32% YoY), outdoor revenue was $500 million (+29% YoY), and racquet sports revenue was $300 million (+13% YoY) [2]. - By region, Greater China revenue grew by 43%, while the Americas and EMEA regions saw a 12% increase [2]. Store Expansion and Direct-to-Consumer (DTC) Growth - The company opened 220 technical apparel stores (+30 YoY) and 243 outdoor stores (+104 YoY), contributing to a DTC revenue increase of 39% [2]. - Same-store sales growth was 19% for technical apparel, 28% for outdoor, and 12% for racquet sports [2]. Revised Guidance - The company has adjusted its FY25 guidance upwards, now expecting revenue growth of 15-17% and an adjusted OPM of 11.5-12% [3]. - For Q2 FY25, the guidance includes revenue growth of 16-18% and an adjusted EPS of $0-$0.02 [3]. Earnings Forecast - The company forecasts revenues of $6 billion, $6.9 billion, and $7.9 billion for FY24, FY25, and FY26 respectively, with adjusted net income estimates of $380 million, $510 million, and $630 million [4]. - Corresponding EPS estimates are $0.69, $0.92, and $1.14 for FY24, FY25, and FY26 respectively [4].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative stock price return of over 20% within the next six months [10]. Core Insights - The company reported strong Q1 FY25 results with revenue of $1.5 billion, a year-on-year increase of 26% (at constant currency), and adjusted net income of $150 million, up 196% year-on-year [1]. - The company has raised its full-year guidance for FY25, projecting revenue growth of 15-17% year-on-year and adjusted EPS of $0.67-$0.72 [3][4]. - The outdoor performance segment showed significant improvement, with the Greater China region leading growth at 43% year-on-year [2]. Summary by Sections Financial Performance - Q1 FY25 revenue reached $1.5 billion, with an adjusted gross margin of 58% (up 3 percentage points year-on-year) and adjusted operating profit margin (OPM) of 16% (up 5 percentage points year-on-year) [1]. - Adjusted net income for Q1 was $150 million, translating to a diluted EPS of $0.27 [1]. Segment Performance - By category, technical apparel revenue was $700 million (up 32% year-on-year), outdoor revenue was $500 million (up 29% year-on-year), and racquet sports revenue was $300 million (up 13% year-on-year) [2]. - By region, revenue in the Americas grew by 12%, Greater China by 43%, EMEA by 12%, and Asia-Pacific by 49% [2]. Guidance and Projections - The company has adjusted its FY24-26 revenue forecasts to $6 billion, $6.9 billion, and $7.9 billion respectively, up from previous estimates of $5.2 billion, $6 billion, and $6.9 billion [4]. - Adjusted net income projections for FY24-26 are now $380 million, $510 million, and $630 million, respectively [4].

Group 1: Company Overview - Amer Sports, Inc. is part of the Consumer Discretionary sector, which includes 255 individual stocks and holds a Zacks Sector Rank of 11 [2] - The Zacks Rank for Amer Sports, Inc. is currently 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2: Performance Metrics - Over the past 90 days, the Zacks Consensus Estimate for Amer Sports' full-year earnings has increased by 11.3%, reflecting improved analyst sentiment [4] - Amer Sports, Inc. has returned approximately 32.3% since the beginning of the calendar year, significantly outperforming the average 3% gain of the Consumer Discretionary group [4] - In the Leisure and Recreation Products industry, which includes 23 stocks, Amer Sports is performing better with year-to-date returns compared to the industry's average gain of 7.1% [6] Group 3: Comparative Analysis - Colruyt SA Unsponsored ADR, another stock in the Consumer Discretionary sector, has a year-to-date return of 6.4% and a Zacks Rank of 2 (Buy) [5] - The Consumer Products - Discretionary industry, which includes Colruyt, has seen a decline of 8.9% since the start of the year, contrasting with Amer Sports' strong performance [7]

Core Viewpoint - Amer Sports, Inc. has experienced a significant stock surge of 59.4% over the past month, outperforming both the industry and the S&P 500 [1] Stock Performance - As of Wednesday, Amer Sports' stock closed at $37, nearing its 52-week high of $38.42 and well above its 52-week low of $10.11 [1] - The stock has outperformed competitors such as American Outdoor Brands, Academy Sports and Outdoors, and Clarus Corporation [1] Technical Indicators - The stock is trading above its 50-day moving average, indicating strong upward momentum and price stability, reflecting positive market sentiment [4] Growth Factors - Amer Sports is benefiting from robust growth in its Arc'teryx brand, which is the fastest-growing and most profitable, with a 38% year-over-year increase in the women's segment [8] - Arc'teryx is focusing on upgrading its store footprint and enhancing brand awareness through community events [9] - Salomon is gaining traction in the global sneaker market, particularly in footwear, with successful product launches and growth in soft goods [10] Brand Portfolio and Market Position - Amer Sports' portfolio of premium brands positions it uniquely in the active lifestyle market, with potential for sustainable multi-year growth [11] - Both Arc'teryx and Salomon are identified as breakout opportunities with significant global scaling potential [11] Financial Guidance - The company has raised its full-year revenue growth guidance to between 15% and 17%, up from the previous estimate of 13-15% [12] - Earnings per share are now expected to be in the range of 67 to 72 cents, an increase from the prior estimate of 64 to 69 cents [12] Valuation Metrics - Amer Sports is currently valued at a premium, with a forward 12-month P/E ratio of 47.67, compared to the industry's 32.27 and the S&P 500's 21.81 [13] - The Zacks Consensus Estimate for earnings per share has been revised upward by 2.9% to 70 cents, indicating a year-over-year growth of 48.9% [14] Investor Sentiment - The recent stock surge reflects growing investor confidence in Amer Sports' strong brand portfolio and effective strategies, making it an attractive investment opportunity despite its premium valuation [15]

Group 1: Company Performance - Amer Sports reported Q1 2025 revenue of $1.473 billion, a 23% year-over-year increase [1] - Revenue from Greater China reached $446 million, up 43%, while the Asia-Pacific region saw a 49% increase to $157 million [1] - Operating profit surged 97% to $214 million, with adjusted operating profit growing 79% to $232 million [1] Group 2: Industry Trends - The launch of "Laughing New Life" program aims to provide a platform for emerging comedians, enhancing cultural confidence and local content [2] - Airbnb's summer product launch reflects a shift towards personalized travel experiences, integrating accommodation with dining and cultural activities [3] - The introduction of Project Aura AR glasses signifies a pivotal moment for the AR industry, marking the entry into the "Android era" [4][5]

Core Viewpoint - Amer Sports reported strong Q1 2025 results, with revenue of $1.473 billion, a 23% year-over-year increase, and operating profit growth of 97% to $214 million, indicating robust market performance and growth momentum [1][4]. Group 1: Financial Performance - Q1 revenue reached $1.473 billion, up 23% year-over-year (26% growth at constant currency) [1] - Operating profit increased by 97% to $214 million, while adjusted operating profit rose by 79% to $232 million [1] - The company raised its full-year revenue growth forecast to 15%-17% and adjusted earnings per share expectations to $0.67-$0.72 [4] Group 2: Business Segments - The outdoor functional apparel segment, led by Arc'teryx, saw a revenue increase of 28% to $664 million [1] - The mountain outdoor apparel and equipment segment, driven by Salomon footwear expansion, grew by 25% to $502 million [2] - The racquet sports segment, through Wilson's strategic initiatives, achieved a revenue of $306 million, a 12% increase [2] Group 3: Regional Performance - Revenue in the Greater China region surged by 43% to $446 million, with Salomon adding 22 new stores [3] - The Asia-Pacific region reported a 49% revenue increase to $157 million [3] - EMEA region revenue grew by 12% to $405 million, while the Americas achieved $465 million in revenue [3] Group 4: Strategic Insights - The company emphasizes the effectiveness of its direct-to-consumer strategy, with DTC revenue in the outdoor functional apparel segment growing by 19% [1] - Strategic positioning and brand differentiation are highlighted as key factors for sustained growth across various market segments [2] - The CFO noted the company's ability to navigate macroeconomic uncertainties, including tariff adjustments, through a diversified global presence and strong pricing power [4]

Core Viewpoint - Amer Sports is effectively managing the impact of rising import tariffs through a combination of pricing strategies, supplier negotiations, and supply chain optimization, allowing the company to maintain a positive growth trajectory despite macroeconomic uncertainties [1][2]. Financial Performance - In Q1 2025, Amer Sports reported a revenue increase of 23% year-over-year, reaching $1.473 billion, with adjusted net profit rising significantly to $150 million from approximately $50.2 million in the same period last year [1]. - The company has raised its full-year revenue growth forecast to 15%-17%, despite the ongoing 30% tariffs on imports from China, indicating confidence in its operational and financial momentum [2]. Market Position and Growth - The Greater China region is currently the second-largest market for Amer Sports but is experiencing the fastest growth, with a 43% year-over-year increase in Q1, amounting to $446 million [2]. - The Americas and EMEA regions also showed steady growth, with revenues of $465 million and $405 million respectively, both achieving a 12% increase [2]. - The Asia-Pacific region reported a remarkable 49% year-over-year growth, reaching $157 million [2]. Stock Market Reaction - Following the earnings release, Amer Sports' stock surged, reaching a peak of $37.99 per share, marking a new high for the year, and closing at $37.37, which represents an increase of over 19% [3]. - The company's market capitalization surpassed $20 billion, nearly doubling since its IPO [3]. Industry Trends - The outdoor sports market is benefiting from a cultural shift among young consumers in China, with 43.6% of this demographic viewing outdoor activities as social currency, leading to a long-term consumption trend [3]. - The average annual spending on outdoor sports activities in China ranges from 2,000 to 5,000 yuan, with top international brands averaging around 1,000 yuan per item [3].

Core Insights - Amer Sports shares surged 18.1% following the release of first-quarter earnings, reflecting strong market performance [1] - The company has transformed from an industrial entity founded in 1950 to a global sports equipment leader, recently going public in early 2024 after being taken private in late 2018 [2] - Amer's revenue increased by 23% to $1.47 billion in the first quarter, with adjusted earnings per share nearly tripling to $0.27, surpassing analyst expectations [3] Financial Performance - The company raised its full-year 2025 guidance to a midpoint revenue growth of 16% and adjusted EPS around $0.70, up from previous guidance of 14% growth and $0.67 [3] - The impressive 23% revenue growth is notable in the current global economic climate, with management indicating the ability to offset tariff impacts through pricing strategies and supply chain adjustments [4] - The recovery of the China segment, which previously struggled, contributed significantly to growth, with a 43% increase last quarter, alongside low double-digit growth in North America and Europe [5] Profitability and Valuation - Amer's transition from near-break-even results a year ago to healthy profitability was aided by reduced interest expenses due to debt repayment from IPO proceeds [6] - The stock currently trades at approximately 50 times this year's earnings guidance, indicating a high valuation, but potential for rapid earnings growth if the company maintains its growth trajectory [6]

Core Insights - Amer Sports, Inc. reported a revenue of $1.47 billion for the quarter ended March 2025, reflecting a year-over-year increase of 24.5% and surpassing the Zacks Consensus Estimate by 6.88% [1] - The company's EPS for the quarter was $0.27, significantly higher than the $0.08 reported in the same quarter last year, resulting in an EPS surprise of 80.00% compared to the consensus estimate of $0.15 [1] Financial Performance - The stock of Amer Sports has shown a return of +44.9% over the past month, outperforming the Zacks S&P 500 composite, which increased by +13.1% [3] - The company currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3] Geographic Revenue Breakdown - EMEA revenue reached $404.90 million, exceeding the estimated $376.04 million, marking a year-over-year increase of +12.8% [4] - Asia Pacific revenue was reported at $156.90 million, surpassing the estimate of $152.72 million, with a significant year-over-year growth of +50.9% [4] - Greater China revenue was $446 million, exceeding the average estimate of $399.35 million, representing a +43.9% increase year-over-year [4] - Americas revenue totaled $464.70 million, above the estimated $440.88 million, reflecting a +13.3% change compared to the previous year [4] Segment Revenue Analysis - Technical Apparel segment revenue was $663.80 million, exceeding the average estimate of $637.72 million, with a year-over-year increase of +30.2% [4] - Outdoor Performance segment revenue reached $502.40 million, surpassing the estimate of $453.74 million, representing a +25.6% change year-over-year [4] - Direct-to-Consumer (DTC) channel revenue was reported at $692.60 million, exceeding the estimate of $626.77 million, with a +41.6% increase compared to the year-ago quarter [4] - Wholesale channel revenue was $779.90 million, above the estimated $751.97 million, reflecting a +12.4% year-over-year change [4] - Ball & Racquet Sports segment revenue was $306.30 million, exceeding the estimate of $287.29 million, with a +12.2% increase year-over-year [4] Adjusted Operating Profit - Adjusted Operating Profit for the Technical Apparel segment was $157.80 million, surpassing the average estimate of $146.17 million [4] - Adjusted Operating Profit for the Ball & Racquet Sports segment was reported at $20.20 million, exceeding the estimate of $14.33 million [4] - Adjusted Operating Profit for the Outdoor Performance segment reached $73.80 million, significantly higher than the average estimate of $27.12 million [4]

Amer Sports (AS) Q1 2025 Earnings Call May 20, 2025 08:00 AM ET Company Participants Omar Saad - Vice President of Finance & Investor RelationsJames Zheng - CEOAndrew Page - Chief Financial OfficerStuart Haselden - CEO of Arc'teryxBrooke Roach - Vice President - Equity ResearchChad Britnell - Equity Research Senior AssociateMichael Binetti - Senior Managing DirectorJay Sole - Managing DirectorPaul Lejuez - Managing Director Conference Call Participants Matt Boss - Equity Research AnalystLaurent Vasilescu - ...