Amer Sports Growth Plans on Track But Shares Fall as Investors Worry Over Higher Q1 Costs

Core Insights - Amer Sports' shares fell by as much as 7.1% in pre-market trading due to concerns over higher costs following the company's first quarter guidance [1] Financial Guidance - For the first quarter ending March 31, Amer Sports expects adjusted diluted earnings per share (EPS) to be in the range of 28 to 30 cents, with revenue growth projected at 22% to 24% [2] - For the full year ending December 31, 2026, the company forecasts adjusted diluted EPS between $1.10 to $1.15, with revenue growth of 16% to 18% [2] - Revenue growth for technical apparel and outdoor performance is expected to be between 18% to 20% for the year, driven by brands Arc'teryx and Salomon [2] Performance Overview - Wall Street's consensus estimates for adjusted diluted EPS were 33 cents for the first quarter and $1.17 for 2026, indicating a potential shortfall in expectations [3] - In the fourth quarter, net income increased more than eight-fold to $131.5 million, or 23 cents per diluted share, compared to $15.4 million, or 3 cents, in the previous year [4] - Revenue for the fourth quarter rose by 28.5% to $2.10 billion from $1.64 billion year-over-year [4] - For the full year, net income was $427.4 million, or 76 cents per diluted share, up from $72.6 million, or 14 cents, in 2024, with revenue increasing by 26.7% to $6.57 billion from $5.18 billion [5] Leadership Changes - Carrie Ask has been appointed as the next president and CEO of Wilson, bringing extensive experience from brands such as Helly Hansen, Levi's, and Nike [6]