Amer Sports(US:AS) HTSC·2026-02-26 01:01Investment Rating - The investment rating for the company is "Buy" with a target price of $44.46 [1][9][10]. Core Insights - The company reported strong revenue growth in Q4 2025, with revenue reaching $2.1 billion, a year-over-year increase of 28% (26% when adjusted for fixed exchange rates), driven by growth in the technical apparel and outdoor performance segments [1][6]. - The adjusted operating profit margin (OPM) decreased by 1.1 percentage points to 12.5%, primarily due to increased investments in Salomon [6]. - For 2026, the company expects revenue growth guidance of 16%-18% year-over-year, with adjusted EPS guidance of $1.10-$1.15 and an adjusted OPM of 13.1%-13.3% [6][9]. Financial Performance - Q4 2025 revenue breakdown: - Technical apparel segment: $1 billion, YoY +34% - Outdoor performance segment: $760 million, YoY +29% - Ball sports segment: $340 million, YoY +14% [6][7]. - The company plans to open 25-30 new stores in 2026, with a strong performance in the Greater China region [6][7]. - The adjusted gross margin increased by 1.4 percentage points to 57.8% in Q4 2025, while SG&A expenses rose by 35% to $990 million [8]. Market Outlook - The company is experiencing robust growth across all regions, with revenue growth in Q4 2025 as follows: - Asia-Pacific (excluding Greater China): +53% - Greater China: +42% - EMEA: +21% - Americas: +18% [7]. - The company is strategically optimizing its traditional wholesale channels in the Americas to enhance retail experience and profit margins [7]. Profitability and Valuation - The company adjusted its net profit forecast for 2026-2027 down by 6.2% and 7.0% to $650 million and $810 million, respectively, while introducing a forecast for 2028 of $990 million [9]. - The company maintains a PE ratio of 38.0x for 2026, reflecting confidence in its multi-brand strategy and global expansion [9].