Amer Sports Inc (NYSE:AS) Q2 Earnings Surpass Estimates and Company Raises Full-Year Guidance

Amer Sports Inc (NYSE:AS reported second-quarter earnings that significantly surpassed analyst expectations, though the market reaction appeared muted in pre-market trading. The company posted revenue of $1.236 billion for Q2 2025, exceeding the consensus estimate of $1.216 billion, representing a 23% year-over-year increase on a reported basis. More notably, adjusted diluted earnings per share came in at $0.06, more than double the $0.0273 analysts had projected.

The strong quarterly performance was driven by robust growth across all business segments. Technical Apparel revenue increased 23% to $509 million, Outdoor Performance surged 35% to $414 million, and Ball & Racquet Sports grew 11% to $314 million. Gross margin expanded substantially, rising 270 basis points to 58.5%, while adjusted operating profit skyrocketed 130% to $67 million.

Management's Revised Guidance Versus Analyst Expectations

Perhaps the most significant aspect of the earnings release was management's decision to raise full-year guidance despite acknowledging higher tariff impacts. The company now expects full-year revenue growth of 20-21%, compared to the analyst consensus of approximately 6.26 billion in sales, which would represent roughly 19% growth from 2024's $5.2 billion revenue base. The guidance implies revenue between approximately $6.24 billion to $6.29 billion, positioning the company at or slightly above current analyst expectations.

For earnings, management projected full-year adjusted EPS of $0.77-0.82, substantially higher than the current analyst consensus of $0.79. This guidance demonstrates confidence in the company's ability to maintain momentum through the remainder of the year, particularly given the strong performance of key brands like Arc'teryx and the accelerating footwear business at Salomon.

Market Reaction and Context

Despite the earnings beat and raised guidance, the stock traded down approximately 2.7% in pre-market activity. This reaction may reflect several factors, including profit-taking after recent strength (the stock is up 2.3% over the past week) or broader market concerns about retail sector performance amid persistent inflation concerns. The company's inventory growth of 29% year-over-year to $1.597 billion might also be giving some investors pause, though this likely reflects preparation for expected strong demand in the coming quarters.

The management transition at Wilson, with CEO Joe Dudy stepping down after 30 years with the company, represents another element investors may be weighing. However, the appointment of CFO Andrew Page as interim Wilson CEO suggests continuity in leadership during the transition period.

Segment Performance and Strategic Positioning

The earnings release highlighted particularly strong momentum in the company's premium brands. Arc'teryx continues to demonstrate exceptional performance, while Salomon's footwear acceleration provides what management described as "a strong second leg of growth." The company's ability to navigate tariff challenges while still raising guidance suggests effective mitigation strategies are in place across its brand portfolio.

The company's balance sheet remains manageable, with net debt of $640 million and cash equivalents of $303 million at quarter-end. The strong operational performance is generating sufficient cash flow to support ongoing investments in growth initiatives while maintaining financial flexibility.

For more detailed earnings information and future estimates, readers can review additional data here.

Disclaimer: This article is not investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.