Financial Data and Key Metrics Changes - Amer Sports achieved 23% sales growth in Q4 and 18% revenue growth for the full year, reaching $5.2 billion, with adjusted operating margin expanding by 130 basis points to 11.1% [8][39][40] - Adjusted net income for Q4 was $90 million, compared to an adjusted net loss of $31 million in the prior year, with adjusted diluted earnings per share of $0.17 compared to a loss per share of $0.08 last year [49][50] - Adjusted gross margin increased by 370 basis points to 56.4% in Q4, driven by positive segment, product, regional, and channel mix shifts [46][47] Business Line Data and Key Metrics Changes - Technical Apparel revenues increased 33% to $745 million, led by Arc'teryx, with a 44% DTC expansion and a 29% omni-comp [50][52] - Outdoor Performance segment revenues grew 13% to $594 million, primarily driven by strong performance in Salomon footwear and apparel [53][57] - Ball & Racquet segment revenue increased 22% to $296 million, driven by strong trends in racquet sports and softgoods [58][61] Market Data and Key Metrics Changes - Greater China and APAC regions delivered strong growth, with Greater China increasing by 54% and APAC by 52% in Q4 [42][43] - The Americas accelerated to 15% growth, while EMEA grew by 8% in Q4 [42][43] - Direct-to-consumer (DTC) sales grew by 46%, led by Arc'teryx and Salomon footwear [41] Company Strategy and Development Direction - The company is focused on expanding its unique portfolio of premium outdoor and sports brands, with significant growth potential in Arc'teryx and Salomon [9][10] - Arc'teryx is pursuing a direct-to-consumer model and plans to open 25 to 30 new stores in 2025, with a strong emphasis on footwear and women's segments [15][20][23] - The company aims to leverage its strong brand positions in the premium sports and outdoor market, particularly in China, where it sees significant growth opportunities [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within the global sports and outdoor space, anticipating continued strong growth in 2025 [9][38] - The company expects reported group revenue growth between 13% and 15% for 2025, with a focus on maintaining strong margins despite potential FX headwinds [65][66] - Management highlighted the importance of inventory discipline and the potential impact of new tariffs on sourcing, particularly for the Ball & Racquet segment [63][64] Other Important Information - The company paid down its entire $1.2 billion term loans before year-end, ending the quarter with $600 million of net debt [61][62] - The company plans to invest approximately $300 million in CapEx for new store expansion and logistics improvements in 2025 [69] Q&A Session Summary Question: Update on long-term store targets for Arc'teryx - Management indicated plans for 25 to 30 new stores in 2025, with potential for around 200 stores in North America and 150 to 200 in Mainland China [74][75] Question: Drivers of comp acceleration at Arc'teryx - Management noted broad-based strength in traffic and conversion, with strong e-commerce results and a clean inventory position heading into 2025 [80][83] Question: Investments in SG&A for sustaining revenue growth - Management emphasized investments in new store build-out, consumer connection, and infrastructure improvements, expecting SG&A to remain relatively flat in 2025 [89][90] Question: Growth expectations for footwear and women's segments - Management highlighted significant growth in footwear and women's segments, with plans to expand distribution and improve in-stocks for footwear in 2025 [95][99] Question: Regional performance expectations for 2025 - Management expects continued positive growth across all regions, with a solid plan to enhance softgoods and footwear penetration in EMEA [106][107] Question: Opportunities to reduce finance costs and tax rate - Management indicated a focus on further debt pay-down and driving the effective tax rate towards the statutory rate of close to 27% [111][112] Question: Gross margin expansion drivers - Management attributed gross margin expansion primarily to the growth of Arc'teryx and a favorable mix shift towards higher-margin products [125][127]

Core Insights - Amer Sports, Inc. reported revenue of $1.64 billion for the quarter ended December 2024, reflecting a 24.4% increase year-over-year and a surprise of +3.07% over the Zacks Consensus Estimate of $1.59 billion [1] - The company's EPS for the quarter was $0.17, a significant improvement from -$0.11 in the same quarter last year, aligning with the consensus EPS estimate [1] Revenue Performance - Geographic Revenues: - EMEA: $491.20 million, exceeding the estimated $465.14 million [4] - Asia Pacific: $176 million, slightly below the estimated $177.93 million [4] - Greater China: $383.90 million, surpassing the estimated $376.54 million [4] - Americas: $584.40 million, above the estimated $570.45 million [4] - Segment Revenue: - Technical Apparel: $745 million, slightly above the estimated $742.91 million [4] - Outdoor Performance: $594.30 million, exceeding the estimated $571.08 million [4] - Ball & Racquet Sports: $296.20 million, above the estimated $291.78 million [4] Channel and Profit Metrics - Channel Revenues: - DTC: $832.80 million, significantly above the estimated $792.49 million [4] - Wholesale: $802.70 million, slightly below the estimated $813.28 million [4] - Adjusted Operating Profit: - Technical Apparel: $181.30 million, exceeding the estimated $180.14 million [4] - Ball & Racquet Sports: -$10.90 million, significantly below the estimated $8.05 million [4] - Outdoor Performance: $66 million, above the estimated $47.17 million [4] Stock Performance - Amer Sports, Inc. shares have returned -6% over the past month, compared to the Zacks S&P 500 composite's -1.8% change, with a Zacks Rank 3 (Hold) indicating potential performance in line with the broader market [3]

Core Insights - Amer Sports, Inc. reported quarterly earnings of $0.17 per share, matching the Zacks Consensus Estimate, and showing improvement from a loss of $0.11 per share a year ago [1] - The company achieved revenues of $1.64 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 3.07% and up from $1.32 billion year-over-year [2] - Amer Sports has surpassed consensus EPS estimates three times in the last four quarters and has topped revenue estimates four times in the same period [1][2] Earnings Performance - The earnings surprise for the previous quarter was 55.56%, with actual earnings of $0.14 per share compared to an expected $0.09 [1] - The current consensus EPS estimate for the upcoming quarter is $0.17, with projected revenues of $1.37 billion, and for the current fiscal year, the EPS estimate is $0.67 on revenues of $5.89 billion [7] Stock Performance and Outlook - Amer Sports shares have increased by approximately 2.3% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Industry Context - The Leisure and Recreation Products industry, to which Amer Sports belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Amer Sports may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with Amer Sports, Inc. (AS) currently holding a Momentum Style Score of B [2] Group 2: Performance Metrics - Amer Sports, Inc. shares have increased by 4.55% over the past week, while the Zacks Leisure and Recreation Products industry has decreased by 0.41% during the same period [5] - Over the past quarter, AS shares have risen by 61.62%, and over the last year, they have increased by 111.56%, significantly outperforming the S&P 500, which moved 5.14% and 24.19% respectively [6] Group 3: Trading Volume and Earnings Outlook - The average 20-day trading volume for AS is 2,268,454 shares, indicating a bullish sign if the stock is rising with above-average volume [7] - In the past two months, 3 earnings estimates for AS have increased while 1 has decreased, raising the consensus estimate from $0.45 to $0.46 [9] Group 4: Conclusion - Given the positive performance metrics and earnings outlook, Amer Sports, Inc. is rated as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [11]

Investment Rating - The report maintains a "Buy" rating for Amer Sports, indicating an expected relative return of over 20% within the next six months [5]. Core Insights - Amer Sports anticipates FY2024 revenue growth at the high end of its previous guidance range of 16-17%, with adjusted operating profit margin expected to be at the high end of 10.5-11.0% [1][4]. - The company has successfully repaid $1.2 billion of its outstanding term loans and expects adjusted net financial costs for FY2025 to be around $120 million, down from previous guidance of $180-190 million [1]. - Despite adverse foreign exchange rate fluctuations, the brand portfolio is expected to achieve strong growth and profitability in FY24Q4, demonstrating strong market competitiveness [2]. - The company has been recognized as a "Top Employer" in China for 2025, highlighting its talent development strategy and corporate culture [3]. - The flagship brands, Arc'teryx and Salomon, are expected to lead sustainable long-term growth and margin improvement through global expansion [2][3]. Financial Projections - Revenue projections for Amer Sports are $5.1 billion, $5.8 billion, and $6.7 billion for the years 2024, 2025, and 2026, respectively [4]. - The expected net profit attributable to shareholders is projected to be $170 million, $320 million, and $440 million for the same years [4]. - Corresponding EPS estimates are $0.35, $0.66, and $0.90, with PE ratios of 85X, 45X, and 33X for 2024, 2025, and 2026, respectively [4].

Group 1: Reddit - Reddit has provided a total return of over 300% since its IPO on March 20, with current shares priced at $149.05 [2] - The platform has over 100,000 discussion boards, known as subreddits, and generates revenue primarily through advertisements [2][3] - Reddit has become a popular source for informal information, attracting over 250 million unique users weekly, making it appealing for advertisers [3] Group 2: Amer Sports - Amer Sports has returned an impressive 500% since going public on March 7, with shares currently priced at $24.74 [5] - The company operates in three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports, and owns brands like Arc'teryx and Wilson [5] - Revenue growth has been strong, with Q1 revenue increasing by 48% year-over-year and Q3 reaching 68%, while the technical apparel segment has seen over 30% growth each quarter [4][6] Group 3: Nano Nuclear Energy - Nano Nuclear Energy has risen 740% since its IPO in May, with shares currently priced at $29.75 [8] - The company is focused on commercializing small modular reactors (SMRs), which are seen as a potential solution for providing reliable and clean electricity [8] - Despite the significant stock price increase, Nano currently has $0 in revenue as it is still in the early stages of reactor development and has not yet proven the economic viability of SMRs [9][10]

Group 1 - Astronics Corporation (ATRO) has seen a 1.7% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [1] - Amer Sports, Inc. (AS) has experienced a 2.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Brookfield Asset Management Ltd. (BAM) has recorded a 2.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Shopify Inc. (SHOP) has seen a 1.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Fidelis Insurance Holdings Limited (FIHL) has experienced a significant 7.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Financial Performance - Revenue for Q3 2024 reached $1,353.8 million, a 17.4% increase from $1,153.1 million in Q3 2023[4] - Gross profit for the nine months ended September 30, 2024, was $1,954.3 million, up 21.2% from $1,612.4 million in the same period of 2023[4] - Operating profit for Q3 2024 was $176.7 million, compared to $104.7 million in Q3 2023, reflecting a 68.8% increase[4] - Net income for the nine months ended September 30, 2024, was $61.3 million, a significant recovery from a net loss of $113.9 million in the same period of 2023[4] - Total comprehensive income for Q3 2024 was $90.4 million, compared to $65.7 million in Q3 2023[5] - Adjusted operating profit for the three months ended September 30, 2024, was $195.0 million, compared to $133.5 million for the same period in 2023, reflecting a 46.1% increase[32][33] - The company reported an income before tax of $128.9 million for the three months ended September 30, 2024, compared to a loss before tax of $3.3 million in the same period of 2023[32][33] - For the three months ended September 30, 2024, the company reported an income of $55.8 million, compared to a loss of $37.7 million in the same period of 2023[112] - The basic earnings per share for the three months ended September 30, 2024, was $0.11, while it was $(0.10) for the same period in 2023[112] Revenue Segments - The Technical Apparel segment generated revenue of $520.0 million for the three months ended September 30, 2024, up from $388.7 million in the same period of 2023, marking a 33.8% increase[32][33] - The Outdoor Performance segment reported revenue of $533.6 million for the three months ended September 30, 2024, compared to $494.6 million in the same period of 2023, an increase of 7.9%[32][33] - The Ball & Racquet Sports segment achieved revenue of $300.2 million for the three months ended September 30, 2024, compared to $269.8 million in the same period of 2023, a 11.3% increase[32][33] - Revenue from the Americas for the three months ended September 30, 2024, was $487.8 million, up 7.2% from $455.0 million in 2023[41] - Greater China revenue increased significantly to $312.9 million for the three months ended September 30, 2024, compared to $200.5 million in 2023, representing a 56.1% growth[41] - Direct-to-Consumer (DTC) revenue for the three months ended September 30, 2024, was $479.8 million, a 40.7% increase from $341.1 million in 2023[43] Assets and Liabilities - Total assets increased to $8,828.4 million as of September 30, 2024, compared to $8,373.8 million at the end of 2023[8] - Cash and cash equivalents decreased to $312.0 million from $483.4 million at the end of 2023[7] - Inventories rose to $1,338.5 million as of September 30, 2024, compared to $1,099.6 million at the end of 2023, indicating a 21.7% increase[7] - The company reported gross inventories of $1,376.2 million as of September 30, 2024, compared to $1,129.0 million as of December 31, 2023[75] - As of September 30, 2024, total interest-bearing liabilities amounted to $2,787.4 million, with loans from financial institutions at $2,189.1 million[80] - Long-term interest-bearing liabilities were reported at $1,984.7 million, while total long-term financial liabilities reached $2,415.1 million[101] - Current interest-bearing liabilities stood at $286.1 million, contributing to total current financial liabilities of $3,910.9 million[101] Expenses and Costs - Selling, general and administrative expenses totaled $586.5 million for the three months ended September 30, 2024, compared to $488.1 million in 2023, reflecting a 20.1% increase[45] - The company reported a decrease in finance costs to $178.9 million for the nine months ended September 30, 2024, down from $296.6 million in the same period of 2023[9] - For the three months ended September 30, 2024, finance income was $1.1 million, while finance costs totaled $48.9 million, resulting in a net finance cost of $47.8 million[64] - The income tax expense for the three months ended September 30, 2024, was $72.7 million, with an effective tax rate of 56%[67] Strategic Initiatives - The company plans to continue investing in property, plant, and equipment, with $157.0 million spent in Q3 2024[9] - The company sold the ENVE business on May 1, 2024, which represented less than 1% of its net revenue, indicating a strategic focus on core brands[38] - The Company expects continued growth in revenue driven by market expansion and new product launches in the upcoming quarters[41] Shareholder Information - The company raised $1.37 billion in gross proceeds from its IPO by issuing 105 million ordinary shares at an initial price of $13.00[18] - An additional $204.8 million was raised through the exercise of the underwriters' overallotment option for 15,750,000 shares at the same price[19] - The company had 505,559,667 ordinary shares outstanding as of September 30, 2024, with a share capital of $16.9 million[76] - The Company approved the 2024 Omnibus Incentive Plan, allowing for the issuance of up to 40,500,010 shares, including various share-based awards[60] - The company granted 1,101,085 Restricted Share Units (RSUs) and 2,012,596 Performance Share Units (PSUs) during the year, with grant date fair values of $13.63 and $14.55, respectively[63] Other Financial Metrics - The company recorded a loss on the early extinguishment of debt of $14.3 million during the nine months ended September 30, 2024[64] - The effective tax rate for the nine months ended September 30, 2024, was 32%, including a discrete tax benefit of $19.9 million due to the reversal of uncertain tax positions[68] - The company incurred $2.3 million in transaction costs due to the repricing of its loan facilities, recorded under Finance Cost[83] - The company recorded provisions totaling $33.6 million as of September 30, 2024, with $24.1 million related to product warranty[86] - Guarantees amounted to $19.1 million and other commitments totaled $348.8 million as of September 30, 2024[87]

Financial Data and Key Metrics Changes - Amer Sports Group achieved 17% sales growth in Q3 2024, with an adjusted operating margin of 14.4%, significantly above expectations [11][41] - Adjusted net income was $71 million in Q3, compared to an adjusted net loss of $13 million in the prior year [45] - Adjusted gross margin increased by 410 basis points to 55.5% in Q3, driven by positive mix shifts and lower discounting [41][44] Business Line Data and Key Metrics Changes - Technical apparel revenue increased by 34% to $520 million, led by Arc'teryx, with DTC growth of 40% [46] - Outdoor performance segment revenues increased by 8% to $534 million, driven by double-digit growth in Salomon footwear and apparel [49] - Ball and racquet revenue increased by 11% to $300 million, with strong trends in racquet sports and performance tennis [52] Market Data and Key Metrics Changes - Greater China saw a remarkable 56% growth, significantly outperforming the market [16][40] - Asia Pacific also experienced strong growth at 47%, while the Americas and EMEA saw improvements to 7% and 4% respectively [40] - Salomon footwear showed strong traction in Greater China and APAC, with a new category of outdoor sneakers resonating well with young consumers [28] Company Strategy and Development Direction - The company is focused on expanding its premium outdoor and sports brands, particularly through innovative products and retail expansion [12][13] - Arc'teryx is positioned as a breakout growth story with a disruptive D2C model and plans for significant retail expansion [13][19] - Salomon aims to increase its market share in the sneaker market, leveraging its unique technical performance position [14][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the sports and outdoor market, particularly in China, where consumer engagement is high [16][64] - The company anticipates continued strong performance in Q4, driven by robust demand and successful product launches [80] - Management is optimistic about achieving long-term revenue growth in the low double-digit to mid-teens range, supported by ongoing gross margin expansion [60][114] Other Important Information - The company plans to open a net of 30 new Arc'teryx stores in 2024, the highest in a single year [42] - Leadership changes were announced, with Guillaume Meyzenq appointed as President and CEO of Salomon [32][101] - The company is focused on managing debt and improving its tax rate, with expectations for a more normalized rate in the coming years [106] Q&A Session Summary Question: Discussion on the Chinese consumer and opportunities in the region - Management noted that the Chinese consumer is seeking newness, with the sports segment booming and outdoor activities becoming a lifestyle choice [64] Question: Arc'teryx growth drivers and capital allocation priorities - Management highlighted the successful opening of the Broadway store and strong momentum in footwear and women's categories [70][72] Question: Performance versus plan in Q3 across regions at Arc'teryx - Management reported exceeding expectations in all regions and channels, with strong momentum particularly in APAC and China [78] Question: Footwear opportunity and growth in North America - Management emphasized the importance of expanding the footwear business through both DTC and wholesale channels, with a goal of increasing footwear revenue to 20% [90][92] Question: Leadership vision for Salomon and potential for soft goods growth - Management expressed confidence in Guillaume's leadership and outlined strategic priorities for Salomon, including footwear focus and digital platform development [101][102] Question: Tax rate expectations and SG&A investments - Management indicated ongoing efforts to reduce the effective tax rate and maintain flat SG&A leverage relative to sales [106][112]

Core Viewpoint - Amer Sports, Inc. has experienced a significant stock price increase of 72.4% over the past three months, outperforming the industry growth of 8.9% [1] Stock Price Performance - As of the latest close, Amer Sports' stock price is $19.33, nearing its 52-week high of $19.73 and well above its low of $10.11 [1] - The company has outperformed competitors such as American Outdoor Brands, Academy Sports and Outdoors, and Clarus Corporation, which saw declines of 2.2%, 5.9%, and 30% respectively in the same period [1] Business Update - CEO James Zheng highlighted a strong growth outlook for Greater China, with a revenue increase of over 60% year-over-year during Golden Week (Oct. 1-7, 2024) [3] - The outdoor segment has shown resilience, supported by government stimulus measures in China [4] Brand Performance - Arc'teryx has led growth with high margins, particularly in new categories like footwear and women's wear, showing strong omni-channel performance [5] - Salomon's footwear has gained momentum in Greater China, with the introduction of "Outdoor sneakers" appealing to younger consumers [6] - 27 new Salomon stores were opened in Greater China, aiming for a total of around 200 by the end of 2024 [6] Financial Guidance - Amer Sports raised its full-year revenue growth guidance to between 15% and 17% and expects gross margins to reach 54.5% [7] - Adjusted operating margins are forecasted to be at the higher end of the 10.5% to 11% range, with earnings per share projected between 40 cents and 44 cents [7] Valuation - The company is currently trading at a forward 12-month P/E ratio of 32.1, which is higher than the industry average of 24.33 and the S&P 500's ratio of 22.08 [9]