Amer Sports(US:AS) Shenwan Hongyuan Securities·2026-02-27 07:48Investment Rating - The report maintains a "Buy" rating for Amer Sports, indicating a strong investment outlook [2][5]. Core Insights - Amer Sports reported Q4 and full-year results that exceeded expectations, with Q4 revenue of $2.1 billion, a year-over-year increase of 28% (26% growth at constant currency). The full-year revenue grew by 27% to $6.57 billion, surpassing previous guidance of 23-24% growth [5]. - The net profit for the year reached $430 million, a staggering increase of 489%, while adjusted net profit grew by 131% to $550 million. The adjusted diluted earnings per share were $0.97, significantly above the prior guidance of $0.88-0.92 [5]. - The company anticipates continued double-digit revenue growth in 2026, projecting a revenue increase of 16-18%, with Q1 expected to grow by 22-24% [5]. Financial Data and Profit Forecast - Revenue projections for FY2024 to FY2028 are as follows: - FY2024: $5,183 million - FY2025: $6,566 million - FY2026E: $7,721 million - FY2027E: $8,914 million - FY2028E: $10,048 million - The expected year-over-year growth rates are 18% for FY2024, 27% for FY2025, 18% for FY2026, 15% for FY2027, and 13% for FY2028 [4]. - Adjusted net profit forecasts are as follows: - FY2026E: $669 million - FY2027E: $822 million - FY2028E: $973 million [4][5]. Business Segment Performance - The three main business segments showed comprehensive growth: - The technology apparel segment (Arc'teryx) generated $2.86 billion in revenue, a 30% increase, with a comparable store growth of 19% [5]. - The outdoor segment (Salomon) achieved $2.4 billion in revenue, up 31%, with a profit margin increase of 3.1 percentage points to 12.5% [5]. - The ball sports segment (Wilson) saw revenue of $1.31 billion, a 13% increase, with a profit margin improvement of 1.6 percentage points to 3.6% [5]. Regional and Channel Performance - All four regions experienced double-digit growth: - Americas: $2.13 billion, up 14% - EMEA: $1.81 billion, up 19% - Greater China: $1.86 billion, up 43% - Asia-Pacific: $770 million, up 51% [5]. - Direct-to-consumer (DTC) sales grew by 42% to $3.21 billion, accounting for 49% of total revenue [5]. Profitability and Inventory Management - The adjusted gross margin for the year was 58.0%, an increase of 2.3 percentage points, with a slight decrease in operating profit margin to 12.8% [5]. - Inventory increased by 33% to $1.62 billion, slightly above the revenue growth rate of 27%, but in line with company expectations [5].