Core Viewpoint - Amer Sports reported strong Q1 2025 results, with a revenue increase of 23% year-over-year, leading to a stock price surge of over 19% on the earnings release day [1] Group 1: Financial Performance - Q1 2025 revenue reached $1.473 billion, with a 26% increase when adjusted for fixed exchange rates [1] - Adjusted gross margin improved by 330 basis points to 58.0%, and adjusted operating margin increased by 490 basis points to 15.8% [1] - Adjusted net profit was $148 million, with diluted earnings per share of $0.27 [1] Group 2: Segment Performance - The Technical Apparel segment, led by Arc'teryx, generated $664 million in revenue, a 28% increase, with all regions and channels showing growth [2] - The Outdoor Performance segment, centered on Salomon, achieved $502 million in revenue, up 25%, driven by strong sales in non-durable goods and winter sports equipment [2] - The Ball & Racquet Sports segment saw a stable revenue growth of 12%, reaching $306 million, with an operating margin increase of 270 basis points to 6.6% [3] Group 3: Regional Growth - Significant growth in the Greater China and Asia-Pacific regions, with revenue increases of 43% and 49%, respectively, reaching $446 million and $157 million [4] - The Americas and EMEA regions also experienced double-digit growth, with revenues of $465 million and $405 million, both up 12% year-over-year [4] Group 4: Store Expansion - Continued store expansion, with the Outdoor Performance segment adding 104 stores, bringing the total to 243, and the Ball & Racquet Sports segment increasing by 36 stores to 55 [5] - Salomon added 22 stores in Greater China during Q1, with plans to increase the total to nearly 300 [5] Group 5: Updated Guidance - Based on Q1 performance, Amer Sports raised its full-year revenue growth forecast to 15-17%, up from 13-15% [6] - Adjusted diluted earnings per share guidance increased to $0.67–0.72, from a previous forecast of $0.64–0.69 [6] - Revenue growth expectations for the Outdoor Performance segment were raised to mid-double digits, while the Technical Apparel segment's growth forecast was adjusted to 20%-22% [6] Group 6: Tariff Impact Considerations - Concerns regarding the sustainability of growth amid U.S. tariff uncertainties were addressed, with the CEO expressing confidence in the company's pricing power and long-term growth trends [7] - Even with potential higher tariffs, the estimated impact on earnings per share for 2025 is projected to be minimal, at approximately $0.05 [7]