Core Insights - Amer Sports reported a strong performance in Q2 2025, with revenue increasing by 23% year-on-year to $1.236 billion and net profit turning positive at $18.2 million, compared to a loss of $4 million in the same period last year [2][4] Financial Performance - Gross margin improved by 270 basis points to 58.5%, while adjusted gross margin rose by 250 basis points to 58.7% [2] - Operating profit surged by 614% to $44 million, with adjusted operating profit increasing by 130% to $67 million, including a government subsidy of $19 million received in Q2 [2] - Net profit increased from a loss of $4 million to $18 million, with adjusted net profit growing by 46% to $36 million [2] Regional Performance - Revenue in Greater China reached $410 million, up 42% year-on-year; Asia-Pacific revenue grew by 45% to $155 million; Americas revenue increased by 6% to $395 million; and EMEA revenue rose by 18% to $276 million [3] Future Guidance - Amer Sports raised its full-year revenue guidance, expecting a growth of 20%-21% for FY2025, despite challenges from tariffs on imports from China [4] Brand Dynamics - Salomon's revenue growth outpaced Arc'teryx, with Salomon's outdoor segment growing by 35% compared to Arc'teryx's 23% in Q2 [6] - Salomon's footwear business is becoming a significant growth driver for Amer Sports, with the number of Salomon stores increasing by 58% to 256, while Arc'teryx stores grew by only 12% to 227 [7] Challenges Ahead - The $19 million government subsidy played a crucial role in profit improvement, and without it, profitability would be significantly lower [9] - Inventory levels rose by 29% year-on-year to $1.597 billion, raising concerns about potential overstocking issues [9] - The company faces challenges from rising costs in channels, marketing, and labor, alongside macroeconomic uncertainties related to tariffs and slowing growth in Arc'teryx [10]