Investment Rating - The report assigns an "Accumulate" rating for Amer Sports [1] Core Views - The company is positioned in the high-end multi-brand outdoor sports segment, with strong growth potential driven by its core brands and strategic expansion in the Greater China region [3][6] - The company has streamlined its brand matrix post-acquisition, focusing on high-potential brands like Arc'teryx, Salomon, and Wilson, which are expected to drive significant revenue growth [10][12] Financial Summary - Revenue is projected to grow from $3.55 billion in 2022 to $8.23 billion by 2027, with a CAGR of 17.4% [5] - Net profit is expected to turn positive in 2024, reaching $730 million by 2027, with a significant increase of 515.9% in 2025 [5] - The company’s PE ratio is projected to decrease from 293.59 in 2024 to 29.96 by 2027, indicating improving profitability [5] Market Expansion and Brand Performance - The company has seen a revenue increase of 542% in the Greater China region from 2020 to 2024, with a revenue share increase of 17 percentage points to 25% [6][31] - Arc'teryx is expected to double its revenue, driven by strong DTC (Direct-to-Consumer) strategies and store expansion [42] - Salomon and Wilson are also expected to see significant growth, with Salomon's revenue projected to reach $1.44 billion in 2024 [45][64] Strategic Initiatives - The company is focusing on enhancing its DTC sales, which have grown significantly, with a 43.8% annual increase from 2019 to 2024 [31] - The management team has been restructured to include experienced leaders from various high-profile brands, enhancing operational efficiency and brand strategy [26][27] Competitive Landscape - The outdoor sports market is expected to grow at a CAGR of 7.1% in the Asia-Pacific region, with China projected to become the largest market for outdoor footwear and apparel by 2030 [6][18] - The company is well-positioned to capitalize on this growth due to its strong local shareholder backing and brand recognition [6][10]

Investment Rating - The report assigns an "Accumulate" rating for Amer Sports [1] Core Views - The company is positioned in the high-end multi-brand outdoor sports segment, with strong growth potential driven by its core brands and strategic expansion in the Greater China region [3][6] - The financial outlook is positive, with projected net profits for 2025 and 2026 expected to reach $447 million and $566 million, respectively, reflecting significant growth [6] Financial Summary - Revenue is projected to grow from $3,549 million in 2022 to $8,228 million by 2027, with a compound annual growth rate (CAGR) of 17.4% [5] - Gross profit is expected to increase from $1,764 million in 2022 to $4,740 million in 2027, indicating a strong upward trend in profitability [5] - The company is forecasted to achieve a net profit of $73 million in 2024, transitioning from losses in previous years [5] Market and Brand Positioning - Amer Sports has streamlined its brand matrix post-acquisition, focusing on high-potential brands like Arc'teryx, Salomon, and Wilson, which are expected to drive revenue growth [10][12] - The company has seen a significant increase in market share in China, with revenue from the Greater China region increasing sixfold from 2020 to 2024 [6][16] - Direct-to-consumer (DTC) sales have risen significantly, with DTC revenue expected to grow at an annual rate of 43.8% from 2019 to 2024 [31] Growth Drivers - The outdoor sports market is experiencing robust growth, with the Asia-Pacific region projected to lead the market, driven by increasing consumer interest in outdoor activities [6][18] - The company is expanding its store footprint, particularly in China, where it plans to increase the number of Salomon stores significantly [43][64] - Arc'teryx is expected to double its revenue, supported by a strong product lineup and effective marketing strategies [42][50] Brand Performance - Arc'teryx is leading in the functional apparel category, with a projected revenue of $2,019 million in 2024, reflecting a CAGR of 38% since 2019 [45] - Salomon's footwear segment is expected to see double-digit growth, with a focus on expanding its market presence in key cities [60] - Wilson is recovering from previous inventory challenges and is expected to return to double-digit growth in the near future [64]

Group 1: Company Overview - Amer Sports, Inc. (AS) is part of the Consumer Discretionary sector, which includes 255 companies and ranks 10 in the Zacks Sector Rank [2] - The Zacks Rank for Amer Sports, Inc. is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Group 2: Performance Metrics - Over the past quarter, the Zacks Consensus Estimate for Amer Sports' full-year earnings has increased by 13.1%, reflecting improved analyst sentiment [4] - Year-to-date, Amer Sports has returned 34.2%, significantly outperforming the Consumer Discretionary sector average return of 6.1% [4] Group 3: Industry Context - Amer Sports belongs to the Leisure and Recreation Products industry, which consists of 23 stocks and currently ranks 184 in the Zacks Industry Rank, with an average gain of 10.1% year-to-date [6] - In contrast, Colruyt SA Unsponsored ADR, another outperforming stock in the Consumer Discretionary sector, belongs to the Consumer Products - Discretionary industry, which has declined by 8.3% year-to-date [6]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Amer Sports, Inc. (AS) - Amer Sports, Inc. currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] Performance Metrics - Over the past week, shares of Amer Sports have increased by 18.95%, while the Zacks Leisure and Recreation Products industry has declined by 4.04% [5] - In a longer timeframe, the monthly price change for Amer Sports is 51.96%, significantly outperforming the industry's 3.23% [5] - Over the last three months, shares have risen by 30.26%, and over the past year, they have surged by 145.18%, compared to the S&P 500's movements of -0.42% and 13.57%, respectively [6] Trading Volume - The average 20-day trading volume for Amer Sports is 5,509,491 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, three earnings estimates for Amer Sports have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $0.68 to $0.78 [9] - For the next fiscal year, two estimates have moved up, while one has been revised down [9] Conclusion - Given the strong performance metrics and positive earnings outlook, Amer Sports, Inc. is positioned as a solid momentum pick with a Momentum Score of A and a Zacks Rank of 2 (Buy) [11]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The outdoor performance department has shown strong performance, with rapid store expansion in the Greater China region [2] - The company reported a revenue of $1.473 billion for FY2025 Q1, a year-on-year increase of 26%, exceeding market expectations [8] - The company has raised its FY2025 revenue guidance to a year-on-year increase of 15%-17% [9] Financial Performance - The technical apparel department generated $664 million in revenue for FY2025 Q1, a year-on-year increase of 32%, surpassing market expectations of $631 million [3] - The outdoor performance department's revenue reached $502 million for FY2025 Q1, a year-on-year increase of 29%, exceeding market expectations of $452 million [3] - The company expects a revenue growth of 20%-22% for the technical apparel department in 2025 [3] Store Expansion and Market Strategy - The company plans to close some cooperative stores in the Greater China region in 2025, focusing on store optimization rather than expansion [3] - The Salomon brand has seen over 60% year-on-year sales growth in the Greater China and Asia-Pacific regions [3] - The company anticipates reaching 300 stores in China by the end of 2025 [3] Profitability Metrics - The adjusted gross margin improved to 58.0%, a year-on-year increase of 3.3 percentage points [8] - The adjusted operating profit for FY2025 Q1 was $232 million, a year-on-year increase of 79% [8] - The diluted EPS for FY2025 Q1 was $0.27, exceeding market expectations of $0.16 [8] Future Projections - The company forecasts revenues of $6.09 billion, $6.96 billion, and $7.90 billion for the fiscal years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 17%, 14%, and 14% [10] - The projected diluted EPS for 2025 is $0.71, with significant growth expected in subsequent years [10]

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]