Amer Sports Crushes Q1 Estimates, Thanks To Arc'teryx And Salomon, Expects Tariff Impact To Be Negligible

Amer Sports, Inc. (NYSE:AS) shares are trading higher in the premarket after the company reported first-quarter FY25 results.

Revenue rose 23% year over year (Y/Y) to $1.47 billion (+26% Y/Y on a constant currency basis), exceeding the consensus of $1.38 billion.

By segment, Technical Apparel revenue rose 28% year over year to $664 million, reflecting 19% Y/Y omni-comp growth.

Outdoor Performance revenue rose 25% year over year to $502 million, and Ball & Racquet Sports revenue grew 12% year over year to $306 million.

Adjusted gross margin increased by 330 basis points Y/Y to 58.0% in the quarter. Adjusted operating margin expanded 490 basis points Y/Y to 15.8% in the quarter.

Adjusted EPS of 27 cents beat the consensus of 15 cents.

Cash and equivalents totaled $422 million at the end of the quarter.

CEO James Zheng said, ”We began 2025 with a great performance in the first quarter, and that momentum has continued into the second quarter. Led by Arc’teryx and Salomon footwear, our unique portfolio of premium technical brands continues to create white space and take market share in sports and outdoor markets around the world.”

Outlook: Amer Sports raised FY25 guidance for EPS from $0.64-$0.69 to $0.67-$0.72 vs. consensus of $0.67 and sales from $5.86 billion-$5.96 billion to $5.96 billion-$6.06 billion prior vs. consensus of $5.94 billion.

For the second quarter, Amer Sports anticipates adjusted EPS below $0.02, compared to an estimate of $0.01, and sales of $1.153 billion—$1.173 billion, compared to the $1.16 billion estimate.

The company sees reported revenue growth of 15%–17% in FY25 and 16%–18% in the second quarter of 2025.

“This updated guidance assumes that the current 30% tariff on goods arriving to the U.S. from China and 10% tariff on all other countries will stay in place for the remainder of 2025. Given the mitigation strategies we already have underway, we expect the impact to our P&L from higher tariffs to be negligible this year,” CFO Andrew Page added.

”Looking beyond 2025, we believe we will be able to offset the vast majority of higher import tariffs under a wide range of scenarios through pricing, vendor renegotiation, and supply chain maneuvers.”

Investors can gain exposure to the stock via Innovator IBD Breakout Opportunities ETF (NYSE:BOUT).

Price Action: AS shares are up 10.86% at $34.80 premarket at the last check on Tuesday.

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