Core Insights - The "2025 China Listed Company Brand Value Newcomer List TOP50" was released, showcasing a total brand value of 170.576 billion yuan, with Yamaffin Sports ranking first at 28.332 billion yuan [1][2]. Company Rankings - Yamaffin Sports (AS) leads the list with a brand value of 28.332 billion yuan, followed by Longqi Technology (603341) at 18.681 billion yuan and Chabaidao (HK02555) at 16.530 billion yuan [2]. - The 50th ranked company, Ananda (603350), has a brand value of 0.466 billion yuan [2]. Brand Value Distribution - Among the TOP50, 8 companies have a brand value exceeding 5 billion yuan, totaling 119.496 billion yuan, which accounts for 70.1% of the total brand value [2]. - The remaining 42 companies have a brand value below 5 billion yuan, totaling 51.079 billion yuan, representing 29.9% [2]. Industry Analysis - The TOP50 companies span 18 industries, with the daily consumer goods sector leading at a total brand value of 32.354 billion yuan, making up 19.0% of the total [3]. - The home appliance sector ranks lowest with a total brand value of 0.486 billion yuan, accounting for 0.3% [3]. Industry Tier Classification - The industries can be categorized into three tiers based on brand value: - First tier: Daily consumer goods and catering industries, with a combined brand value of 60.683 billion yuan, representing 35.6% [6]. - Second tier: Six industries including apparel, communication, transportation, equipment, electronics, and automotive, with a combined brand value of 91.934 billion yuan, accounting for 53.9% [6]. - Third tier: Ten industries with individual brand values below 10 billion yuan, totaling 17.960 billion yuan, which is 10.5% [6]. Industry Participation - The equipment industry has the highest number of companies in the TOP50, with 12 entrants, followed by the electronics industry with 11 [9]. - The internet and pharmaceutical industries each have 3 companies represented, while other industries have no more than 2 [9].

Revenue and Expenses - For the years ended December 31, 2024 and 2023, the company generated 72.8% and 69.4% of its revenue in currencies other than U.S. dollars, while 78.1% and 75.4% of its operating expenses were incurred in non-U.S. dollar currencies[555]. - The company recognizes revenue from services mainly upon the delivery of goods, with specific accounting practices for wholesale and direct-to-consumer channels[569][572]. Foreign Currency Exposure - A simultaneous strengthening of 10% in the U.S. dollar against foreign currencies would increase the fair value of net monetary assets and liabilities by $77.4 million and $62.8 million for the years ended December 31, 2024 and 2023, respectively[556]. - As of December 31, 2024 and 2023, 22.7% and 33.1% of the company's assets and 11.4% and 76.2% of its liabilities were subject to foreign currency exposure[556]. Liquidity and Credit Facilities - The company has a five-year revolving credit facility of $710 million, which was not utilized as of December 31, 2024, to assist with short-term liquidity needs[560]. - The average payment time for outstanding sales was approximately 40 days as of December 31, 2024, with the largest 20 customers representing about 33% of total accounts receivable[563]. Innovation and R&D - The company emphasizes innovation through continued investment in research and development at various innovation centers, focusing on meeting the evolving needs of athletes and consumers[564]. Inventory and Impairment - Inventory is carried at the lower of cost and net realizable value, requiring estimates related to future selling prices and customer behavior[575]. - Impairment testing is performed annually for goodwill, with key assumptions including forecasted cash flows and estimated discount rates[578][580]. Share-Based Compensation - Share-based compensation expense is recognized ratably over the requisite service period, with no stock options granted in 2024[583]. - Modifications to employee awards that increase total fair value will be recognized, with incremental fair value calculated based on the difference between modified and original awards[585]. - When modifications occur during the vesting period, the incremental fair value is included in the measurement of recognized services from the modification date until vesting[585]. - If a modification changes a share-based payment from cash-settled to equity-settled, the liability is remeasured and reclassified to equity[585]. Accounting Guidance - The company has adopted new accounting guidance, which is detailed in Note 2 of the audited consolidated financial statements[587].

Investment Rating - The report maintains a "Buy" rating for Amer Sports, indicating a positive outlook for the company's future performance [3][4][6]. Core Insights - Amer Sports reported strong financial performance for FY2024, with revenue reaching $5.183 billion, a year-on-year increase of 18%, and a net profit of $73 million, marking a return to profitability [3][4][6]. - The company expects double-digit revenue growth for FY2025, projecting a revenue increase of 13-15% despite adverse currency impacts [3][4][6]. - The report highlights significant growth in the Direct-to-Consumer (DTC) segment, which is a key driver of revenue, with DTC revenue growing by 42.7% in FY2024 [3][4][6]. Financial Data and Earnings Forecast - Revenue Forecast: - FY2023: $4.368 billion - FY2024: $5.183 billion (18% YoY growth) - FY2025E: $5.958 billion (15% YoY growth) - FY2026E: $6.774 billion - FY2027E: $7.587 billion [3][13] - Net Profit Forecast: - FY2023: -$209 million - FY2024: $73 million - FY2025E: $345 million - FY2026E: $452 million - FY2027E: $679 million [3][13] - Gross Margin: - FY2024: 55.4%, up 3 percentage points YoY - FY2025E: 56.5-57.0% [3][8][13] - Operating Profit Margin: - FY2024: 9.1%, up 2.2 percentage points YoY - FY2025E: 11.5-12.0% [3][10][13] - The report indicates that all three major business segments (Technology Apparel, Outdoor, and Ball Sports) showed positive momentum, with Technology Apparel leading growth with a 36% increase in revenue for FY2024 [3][4][6].

Investment Rating - The report assigns a positive investment rating to Amer Sports, indicating strong growth potential in the leisure goods industry [4]. Core Insights - Amer Sports reported a 23% revenue growth in Q4 2024, reaching $1.64 billion, with significant contributions from Technical Apparel, Outdoor Performance, and Ball & Racquet Sports segments [4][5]. - The company experienced a gross margin increase of 3.7 percentage points to 56.1%, driven by optimized business and product mix, as well as lower discount rates [5]. - For the full year 2024, Amer Sports achieved an 18% revenue growth to $5.18 billion, with notable increases in various segments and a significant reduction in leverage ratio from over 5 times to 1 time [5][11]. Revenue Growth by Segment - **Technical Apparel**: Revenue grew 33% to $750 million, primarily driven by the Arc'teryx brand, with DTC expansion increasing by 44% [6]. - **Outdoor Performance**: Revenue increased 13% to $590 million, benefiting from strong growth in Salomon brand products, particularly in the DTC channel [7]. - **Ball & Racquet Sports**: Revenue accelerated to a 22% growth, reaching $290 million, supported by strong performance in Tennis 360 [8]. Financial Overview - The company reported a net profit increase of 135% to $73 million for the full year, with a significant improvement in operating profit margin [5][11]. - For Q1 2025, revenue is expected to grow by 14%-16%, with a gross margin forecasted between 56.5%-57.0% [11]. - For the full year 2025, revenue growth is projected at 13%-15%, with an expected operating profit margin of 11.5%-12.0% [11]. Store Expansion Plans - Amer Sports plans to open 25-30 new Arc'teryx stores and increase Salomon stores in Greater China by 100 [12].

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [6]. Core Insights - The company reported a strong performance in FY2024, with revenue reaching $5.183 billion, a 19% increase year-over-year. Adjusted operating profit margin (OPM) was 11.1%, up 1.3 percentage points, and adjusted net profit was $236 million, a 329% increase [2]. - The company is optimistic about its growth prospects for FY2025, projecting a revenue increase of 13-15% and an OPM of 11.5-12%. The net profit is expected to be between $360 million and $390 million [3]. - The brand "Arc'teryx" is leading global expansion, and the company is well-positioned to capture market share in the growing sports and outdoor trends [4]. Summary by Sections Financial Performance - In Q4 FY2024, the company achieved revenue of $1.636 billion, a 24% increase year-over-year. Adjusted OPM was 13.6%, up 3.3 percentage points, with adjusted operating profit of $220 million, a 63% increase, and adjusted net profit of $90 million, a 388% increase [1]. - For the full year FY2024, revenue was $5.183 billion, with functional apparel revenue at $2.194 billion (up 38%), outdoor revenue at $1.836 billion (up 10%), and ball sports revenue at $1.153 billion (up 4%) [2]. Regional Performance - In Q4 FY2024, revenue from Greater China was $380 million, accounting for 23% of total revenue, with a 54% year-over-year increase. Revenue from the U.S. was $580 million, making up 36% of total revenue, with a 15% increase [1]. - For FY2024, Greater China revenue was $1.3 billion (25% of total revenue, up 54%), while U.S. revenue was $1.86 billion (36% of total revenue, up 7%) [2]. Future Guidance - The company expects Q1 FY2025 revenue to increase by 14-16%, with an OPM of 11-11.5% and net profit projected between $78 million and $84 million [3]. - The company anticipates continued strong growth driven by its premium brands and market expansion opportunities [5].

Investment Rating - The report maintains a "Buy" rating for Amer Sports, expecting a relative stock price increase of over 20% within the next six months [6]. Core Insights - Amer Sports reported a strong performance in FY2024, with revenue reaching $5.183 billion, a 19% increase year-over-year. Adjusted operating profit margin (OPM) was 11.1%, up 1.3 percentage points, and adjusted net profit was $236 million, up 329% [2]. - The company anticipates revenue growth of 13-15% for FY2025, with an OPM of 11.5-12% and net profit projected between $360 million and $390 million [3]. - The brand Arc'teryx is leading global expansion, contributing to a positive long-term growth outlook for the company [4]. - The company is well-positioned for strong growth in 2025, driven by robust trends in sports and outdoor activities, alongside an untapped market potential [5]. Summary by Sections Financial Performance - In Q4 FY2024, Amer Sports generated $1.636 billion in revenue, a 24% increase year-over-year. Adjusted OPM was 13.6%, up 3.3 percentage points, with adjusted operating profit of $220 million, a 63% increase, and adjusted net profit of $90 million, up 388% [1]. - For the full year FY2024, revenue was $5.183 billion, with functional apparel revenue at $2.194 billion (up 38%), outdoor revenue at $1.836 billion (up 10%), and ball sports revenue at $1.153 billion (up 4%) [2]. Regional Performance - In Q4 FY2024, revenue from Greater China was $380 million (23% of total), up 54%. Revenue from the U.S. was $580 million (36% of total), up 15%, while EMEA saw an 8% increase [1]. - For FY2024, Greater China revenue was $1.3 billion (25% of total), up 54%, U.S. revenue was $1.86 billion (36% of total), up 7%, and EMEA revenue increased by 4% [2]. Business Segments - The functional apparel segment, including brands like Arc'teryx, showed significant growth, with Q4 revenue of $745 million (up 34%) and a same-store sales growth of 29% [1]. - The outdoor segment, including Salomon, generated $594 million in Q4 revenue, up 14%, while the ball sports and racquet sports segment generated $296 million, up 23% [1].

Financial Data and Key Metrics Changes - Amer Sports achieved 23% sales growth in Q4 2024 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 at $0.17 compared to a loss of $0.08 per share last year [49][50] Business Line Data and Key Metrics Changes - Technical Apparel revenues increased 33% to $745 million, driven by Arc'teryx, with a 44% growth in direct-to-consumer (DTC) sales [50][52] - Outdoor Performance segment revenues grew 13% to $594 million, primarily due to strong performance in Salomon footwear and apparel [58] - Ball & Racquet segment revenue increased 22% to $296 million, driven by strong trends in racquet sports and softgoods [58][60] Market Data and Key Metrics Changes - Greater China and APAC regions showed strong growth, with Greater China increasing by 54% and APAC by 52% in Q4 [42][43] - North America accelerated to 15% growth, while EMEA grew by 8% [42][43] Company Strategy and Development Direction - The company is focused on expanding its portfolio of premium outdoor and sports brands, with a particular emphasis on the growth potential of Arc'teryx and Salomon sneakers [10][11] - Plans to open 25 to 30 new Arc'teryx stores in 2025, with a bullish outlook for store counts in China [15][75] - The strategy includes enhancing the footwear segment and increasing women's product offerings to achieve a balanced gender mix in sales [96][99] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within the global sports and outdoor market, citing strong brand momentum and growth potential [9][10] - The company anticipates reported group revenue growth between 13% and 15% for 2025, despite expected foreign exchange headwinds [65][66] Other Important Information - Adjusted gross margin increased by 370 basis points to 56.4% in Q4, driven by favorable product and channel mix [46] - The company paid down its entire $1.2 billion term loans before year-end, ending Q4 with $600 million of net debt [61][62] Q&A Session Summary Question: Update on long-term store targets for Arc'teryx - Management plans to continue opening 25 to 30 stores annually, with potential for around 200 stores in North America and 150 to 200 in Mainland China [75] Question: Drivers of comp acceleration at Arc'teryx - Comp drivers included broad-based strength in traffic and conversion, with strong momentum continuing into Q1 [80][82] Question: Investments in SG&A for sustaining revenue growth - Investments will focus on new store build-out, consumer connection, and infrastructure improvements, with SG&A expected to remain relatively flat in 2025 [90] Question: Growth expectations for footwear and women's segments - Footwear penetration is expected to exceed 20% in the coming years, while women's sales approached 40% in Q4 [96][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: Future finance cost and tax rate reduction opportunities - The company aims to further reduce finance costs and drive the effective tax rate towards the statutory rate of close to 27% [111] Question: Gross margin expansion drivers - The primary driver of gross margin expansion is the growth of Arc'teryx, with additional contributions from footwear and softgoods segments [125][127]

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]