Investment Rating - The industry investment rating is "Positive" and is maintained [6] Core Insights - In FY2025Q2 (April 1, 2025 - June 30, 2025), Amer Sports achieved revenue of $1.24 billion, representing a year-on-year increase of 23%, exceeding Bloomberg's consensus estimate of $1.18 billion [2][4] - Gross margin improved by 2.7 percentage points year-on-year to 58.5%, driven by better channel, regional, product, and brand mix, as well as improved discount strategies [2][4] - The net profit margin attributable to shareholders increased by 1.8 percentage points year-on-year to 1.5% due to the rise in gross margin and a decrease in expense ratio [2] Revenue Breakdown - Revenue by region: Americas +6%, EMEA +18%, Asia-Pacific +45%, Greater China +42%, with total revenues of $400 million, $280 million, $150 million, and $410 million respectively [5] - Revenue by channel: DTC (Direct-to-Consumer) +40% to $640 million, Wholesale +9% to $600 million, with DTC channel driving growth [5] - Revenue by product: Technical Apparel +23% to $510 million, Outdoor Performance +35% to $410 million, Ball & Racquet Sports +11% to $310 million, with Outdoor Performance leading growth [5] Inventory and Guidance - As of FY2025Q2, the company's inventory increased by 29% year-on-year to $1.6 billion, primarily due to increased inventory of Arc'teryx to mitigate tariff impacts and delays in air freight [10] - The company raised its full-year guidance, expecting FY2025 revenue to grow by 20% to 21% year-on-year, with Technical Apparel and Outdoor Performance projected to grow by 22% to 25% [10]

Core Viewpoint - Amer Sports, Inc. reported strong second-quarter results, with adjusted earnings per share of 6 cents, surpassing analyst expectations of 3 cents, and quarterly sales of $1.24 billion, reflecting a 23% year-over-year increase, exceeding the forecast of $1.18 billion [1][2]. Financial Performance - The company achieved adjusted earnings per share of 6 cents, beating the consensus estimate of 3 cents [1]. - Quarterly sales reached $1.24 billion, representing a 23% increase year-over-year, compared to the expected $1.18 billion [1]. Brand Performance - The Salomon brand significantly contributed to the outperformance, with omni-channel sales increasing by 28%, operating profit rising by 35% year-over-year, and margins expanding over 700 basis points [3]. - Technical Apparel growth was in line with expectations, showing a 15% increase in comparable sales but slower sequential growth [4]. Market Outlook - Analyst Brooke Roach maintained a Buy rating on Amer Sports with a price target of $45, noting strong results and a raised annual outlook despite tariff challenges [2]. - Management's guidance for third-quarter revenue is above consensus, indicating continued momentum [4]. Regional Insights - Greater China showed positive momentum, and direct-to-consumer (DTC) strength was highlighted as a key factor [4]. - The team is looking for more details on revenue drivers by geography and channel, particularly focusing on the sustainability of growth in China and the Americas [6].

Core Insights - Amer Sports, Inc. reported a revenue of $1.24 billion for the quarter ended June 2025, reflecting a year-over-year increase of 24.4% and surpassing the Zacks Consensus Estimate by 4.22% [1] - The company's EPS for the quarter was $0.06, a significant increase from $0.05 in the same quarter last year, resulting in an EPS surprise of 200% compared to the consensus estimate of $0.02 [1] Revenue Performance - Geographic Revenues: - EMEA: $276.2 million, exceeding the estimated $242.25 million, with a year-over-year increase of 19.1% [4] - Asia Pacific: $154.5 million, slightly below the estimated $161.59 million, but showing a substantial year-over-year increase of 45.8% [4] - Greater China: $410.2 million, surpassing the estimated $373.04 million, with a year-over-year increase of 41.9% [4] - Americas: $395.4 million, slightly above the estimated $389.07 million, with a year-over-year increase of 7.5% [4] - Segment Revenue: - Technical Apparel: $508.9 million, below the estimated $518.35 million, with a year-over-year increase of 25% [4] - Outdoor Performance: $413.7 million, exceeding the estimated $379.21 million, with a year-over-year increase of 36.1% [4] - Ball & Racquet Sports: $313.7 million, surpassing the estimated $292.02 million, with a year-over-year increase of 10.9% [4] - Channel Revenues: - DTC: $640.9 million, exceeding the estimated $600.42 million, with a year-over-year increase of 42.7% [4] - Wholesale: $595.4 million, slightly above the estimated $589.17 million, with a year-over-year increase of 9.3% [4] Profitability Metrics - Adjusted Operating Profit: - Technical Apparel: $70.7 million, below the estimated $75.89 million [4] - Ball & Racquet Sports: $9.7 million, exceeding the estimated $5.22 million [4] - Outdoor Performance: $21.3 million, significantly above the estimated -$13.79 million [4] Stock Performance - Amer Sports, Inc. shares have returned -1.8% over the past month, while the Zacks S&P 500 composite has increased by 2.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Analysts project that Amer Sports, Inc. will report quarterly earnings of $0.02 per share, reflecting a 60% decline year over year, while revenues are expected to reach $1.19 billion, marking a 19.4% increase from the same quarter last year [1]. Earnings Projections - Revisions to earnings projections are crucial for predicting investor behavior regarding the stock, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock performance [2]. Key Metrics Estimates - Analysts estimate 'Segment Revenue- Technical Apparel' at $518.35 million, indicating a year-over-year increase of 27.4% [4]. - 'Segment Revenue- Outdoor Performance' is projected at $379.21 million, suggesting a 24.7% year-over-year change [4]. - 'Channel Revenues- DTC' is expected to reach $600.42 million, reflecting a 33.7% increase year over year [4]. - 'Channel Revenues- Wholesale' is estimated at $589.17 million, indicating an 8.1% change from the prior-year quarter [5]. - 'Segment Revenue- Ball & Racquet Sports' is projected at $292.02 million, suggesting a 3.2% year-over-year increase [5]. - 'Geographic Revenues- Asia Pacific' is expected to reach $161.59 million, indicating a 52.4% change from the year-ago quarter [5]. - 'Geographic Revenues- Greater China' stands at an estimate of $373.04 million, reflecting a 29.1% increase from the prior-year quarter [6]. - 'Geographic Revenues- EMEA' is projected at $242.25 million, suggesting a 4.4% year-over-year change [6]. - 'Geographic Revenues- Americas' is expected to reach $389.07 million, indicating a 5.7% increase from the year-ago quarter [6]. Profit Estimates - The consensus estimate for 'Adjusted Operating Profit- Technical Apparel' is $75.89 million, compared to $58.00 million reported in the same quarter last year [7]. - 'Adjusted Operating Profit- Ball & Racquet Sports' is projected at $5.22 million, compared to $3.00 million in the previous year [7]. Stock Performance - Over the past month, shares of Amer Sports, Inc. have returned -0.5%, while the Zacks S&P 500 composite has changed by +3.5% [7].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - AMER reported a revenue of $5.18 billion for 2024, representing a year-on-year increase of 17.8%, with an adjusted net profit of $240 million, recovering from a loss of $340 million the previous year [2][4]. - In Q4, the company achieved a revenue of $1.64 billion, up 23.2% year-on-year, with an adjusted net profit of $90 million, recovering from a loss of $120 million [2][4]. - The company expects a revenue growth of 13% to 15% for 2025, with an adjusted operating profit margin projected between 11.5% and 12% [7]. Revenue Breakdown - By product category, revenue for Technical Apparel, Outdoor Performance, and Ball & Racquet increased by 36%, 10%, and 4% respectively, reaching $2.19 billion, $1.84 billion, and $1.15 billion [7]. - By region, revenue growth was strongest in Greater China (+54%) and Asia Pacific (+46%), while the Americas saw a decline of 13% [7]. - Direct-to-Consumer (DTC) revenue grew by 43% to $2.27 billion, while wholesale revenue increased by 4% to $2.92 billion [7]. Financial Performance - The adjusted operating profit margin for 2024 was 11.1%, an increase of 1.3 percentage points year-on-year, with Q4 margin at 13.6%, up 3.3 percentage points [7]. - The company anticipates net profits of 12 billion, 13.9 billion, and 15.4 billion yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth of 17%, 15%, and 11% [7].