Financial Data and Key Metrics Changes - Amherst Sports reported a 23% sales growth in Q1 2025, or 26% when adjusted for currency fluctuations, with an adjusted operating margin increase of nearly 500 basis points [6][32] - Adjusted net income for Q1 was $148 million, compared to $50 million in the prior year, with adjusted diluted earnings per share rising to $0.27 from $0.11 [36][37] - Adjusted gross margin increased by 330 basis points to 58% in Q1, driven by favorable channel, geographic, and product mix [34] Business Line Data and Key Metrics Changes - Technical Apparel revenues increased by 28% to $664 million, led by Arcterix, with a direct-to-consumer (D2C) growth of 31% [37][38] - Outdoor Performance segment revenues rose by 25% to $502 million, driven by strong performance in Solomon's soft goods and winter sports equipment [39] - Ball and Racket segment revenue increased by 12% to $306 million, with notable growth in soft goods and racket sports [43] Market Data and Key Metrics Changes - Asia Pacific region saw a 49% growth, followed by a 43% increase in China, while EMEA and The Americas both grew by 12% [33] - D2C channel growth was particularly strong at 39%, led by Solomon Footwear in Greater China and APAC [32] Company Strategy and Development Direction - The company aims to optimize its retail footprint in Greater China, focusing on high-quality store locations rather than rapid expansion [12][13] - Amherst Sports is positioned to manage through macro uncertainties, leveraging its premium brands and pricing power [8][47] - The company plans to open approximately 25 net new Arcterix stores globally in 2025, maintaining a focus on quality over quantity [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating tariff uncertainties due to a clean balance sheet and strong brand portfolio [31][47] - The company raised its full-year revenue growth expectations from 13% to 15% to 17%, despite anticipated tariff impacts [48][53] - Management highlighted the strong demand for premium outdoor products, particularly in Asia and China, as a key growth driver [62] Other Important Information - The company experienced strong consumer engagement, with initiatives like the Achilles Academy driving significant media impressions and sales [15] - The footwear category is expected to become a significant growth avenue, with dedicated teams and P&L structures in place [17][19] Q&A Session Summary Question: Can you elaborate on the competitive advantages and momentum at Solomon? - Management highlighted the unique portfolio of brands and strong demand for premium products, particularly in the modern outdoor sneaker category [60][62] Question: Is the momentum observed in Solomon sustainable? - Management expressed confidence in the sustainability of growth, supported by strong D2C performance and expanding market presence [74][76] Question: What are the expectations for soft goods growth in the outdoor performance category? - Management indicated that soft goods could see significant growth, with a focus on margin accretion as the category expands [81][82] Question: How does the company plan to manage tariff impacts? - Management stated that the impact of tariffs on the P&L is expected to be negligible due to mitigation strategies already in place [46][88] Question: What is the strategy behind closing partner stores in China? - Management explained that closing partner stores to open larger format locations is aimed at enhancing ROI and improving brand presence [97]

Financial Data and Key Metrics Changes - Amer Sports achieved 23% sales growth in Q4 2024 and 18% revenue growth for the full year, reaching $5.2 billion, with adjusted operating margin expanding by 130 basis points to 11.1% [8][39][40] - Adjusted net income for Q4 was $90 million, compared to an adjusted net loss of $31 million in the prior year, with adjusted diluted earnings per share at $0.17 compared to a loss of $0.08 per share last year [49][50] Business Line Data and Key Metrics Changes - Technical Apparel revenues increased 33% to $745 million, driven by Arc'teryx, with a 44% growth in direct-to-consumer (DTC) sales [50][52] - Outdoor Performance segment revenues grew 13% to $594 million, primarily due to strong performance in Salomon footwear and apparel [58] - Ball & Racquet segment revenue increased 22% to $296 million, driven by strong trends in racquet sports and softgoods [58][60] Market Data and Key Metrics Changes - Greater China and APAC regions showed strong growth, with Greater China increasing by 54% and APAC by 52% in Q4 [42][43] - North America accelerated to 15% growth, while EMEA grew by 8% [42][43] Company Strategy and Development Direction - The company is focused on expanding its portfolio of premium outdoor and sports brands, with a particular emphasis on the growth potential of Arc'teryx and Salomon sneakers [10][11] - Plans to open 25 to 30 new Arc'teryx stores in 2025, with a bullish outlook for store counts in China [15][75] - The strategy includes enhancing the footwear segment and increasing women's product offerings to achieve a balanced gender mix in sales [96][99] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within the global sports and outdoor market, citing strong brand momentum and growth potential [9][10] - The company anticipates reported group revenue growth between 13% and 15% for 2025, despite expected foreign exchange headwinds [65][66] Other Important Information - Adjusted gross margin increased by 370 basis points to 56.4% in Q4, driven by favorable product and channel mix [46] - The company paid down its entire $1.2 billion term loans before year-end, ending Q4 with $600 million of net debt [61][62] Q&A Session Summary Question: Update on long-term store targets for Arc'teryx - Management plans to continue opening 25 to 30 stores annually, with potential for around 200 stores in North America and 150 to 200 in Mainland China [75] Question: Drivers of comp acceleration at Arc'teryx - Comp drivers included broad-based strength in traffic and conversion, with strong momentum continuing into Q1 [80][82] Question: Investments in SG&A for sustaining revenue growth - Investments will focus on new store build-out, consumer connection, and infrastructure improvements, with SG&A expected to remain relatively flat in 2025 [90] Question: Growth expectations for footwear and women's segments - Footwear penetration is expected to exceed 20% in the coming years, while women's sales approached 40% in Q4 [96][99] Question: Regional performance expectations for 2025 - Management expects continued positive growth across all regions, with a solid plan to enhance softgoods and footwear penetration in EMEA [106][107] Question: Future finance cost and tax rate reduction opportunities - The company aims to further reduce finance costs and drive the effective tax rate towards the statutory rate of close to 27% [111] Question: Gross margin expansion drivers - The primary driver of gross margin expansion is the growth of Arc'teryx, with additional contributions from footwear and softgoods segments [125][127]