UBS Forecasts 32% EPS CAGR for Amer Sports (AS) on Q3 Beat and Strength of Arc’teryx, Salomon Brands

Core Insights - Amer Sports Inc. is highlighted as a promising investment opportunity, with UBS raising its price target to $54 from $52 while maintaining a Buy rating due to strong growth prospects, particularly for brands like Arc'teryx and Salomon [1] - The company reported a significant revenue increase of 30% year-over-year in Q3 2025, totaling $1.76 billion, which exceeded market expectations [2][3] - Amer Sports' adjusted net income rose to $185 million, a substantial increase from $71 million in the previous year, leading to an adjusted diluted EPS of $0.33, up from $0.14 [3] Financial Performance - Q3 2025 revenue reached $1.76 billion, surpassing expectations by $29.35 million [2] - Adjusted gross margin improved by 2.4% to 57.9%, while adjusted operating margin expanded by 1.3% to 15.7% [2] - Direct-to-Consumer (DTC) sales surged by 51%, particularly driven by the Salomon brand in Greater China and the APAC region [3] Brand and Segment Performance - Technical Apparel revenue, led by Arc'teryx, increased by 31% to $683 million [3] - The growth was broad-based across various segments and geographies, indicating strong overall performance [3] Company Overview - Amer Sports Inc. designs, manufactures, markets, distributes, and sells sports equipment, apparel, footwear, and accessories globally, operating through three segments: Technical Apparel, Outdoor Performance, and Ball & Racquet Sports [4]