In This Article:
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Revenue Growth: 23% sales growth in Q4; 18% revenue growth for 2024 to $5.2 billion.
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Adjusted Operating Margin: Expanded by more than 300 basis points in Q4; 130 basis points expansion for the year to 11.1%.
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Adjusted Gross Margin: Increased 370 basis points to 56.4% in Q4.
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Adjusted Net Income: $90 million in Q4, compared to an adjusted net loss of $31 million in the prior year period.
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Adjusted Diluted EPS: $0.17 in Q4, compared to an adjusted diluted loss per share of $0.08 last year.
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Technical Apparel Revenue: Increased 33% to $745 million in Q4.
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Outdoor Performance Revenue: Increased 13% to $594 million in Q4.
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Ball & Racquet Revenue: Increased 22% to $296 million in Q4.
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Free Cash Flow: Approximately $150 million for 2024.
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Net Debt: Reduced to $600 million at the end of Q4 from $2.0 billion at the end of Q3.
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Store Openings: Arc'teryx opened net eight new retail stores in Q4; Salomon opened 31 net new shops in Greater China in Q4.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Amer Sports Inc (NYSE:AS) reported a strong fourth quarter with sales, adjusted margins, and EPS exceeding expectations.
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The company achieved 23% sales growth and over 300 basis points of adjusted operating margin expansion in Q4.
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Arc'teryx, Salomon, and Wilson brands showed accelerating momentum, contributing to the company's overall growth.
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Greater China and APAC regions delivered strong growth, with EMEA and North America also accelerating.
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The company reduced its leverage significantly, ending the quarter with $600 million of net debt, down from $2.0 billion at the end of Q3.
Negative Points
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Expected FX headwinds are anticipated to slightly weigh on the 2025 reported financial results.
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Winter sports equipment segment faced challenges due to soft reorders in Europe and poor snow conditions.
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The ball & racquet segment, despite strong growth, is expected to grow only low-to-mid single digits long term.
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The company faces potential impacts from new tariffs on imports from China, Canada, Mexico, and Vietnam.
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Adjusted SG&A expenses as a percentage of revenues deleveraged by 20 basis points, indicating increased investments to support growth.
Q & A Highlights
Q: Can you update us on the longer-term store targets for Arc'teryx? A: Stuart Haselden, CEO of Arc'teryx, stated that they plan to continue opening a similar number of stores each year, with 33 net new stores in 2024 and a target of 25-30 for 2025. They see potential for around 200 stores in North America, 75-100 in Europe, 75-100 in APAC outside of China, and 150-200 in Mainland China, with a more bullish outlook for China.