Amer Sports Stock Falls On Cautious Outlook
Amer Sports, Inc. (NYSE:AS) stock fell Tuesday after the company provided below consensus quarterly EPS outlook.
Quarterly Metrics
The company reported fourth-quarter adjusted earnings per share of 31 cents, beating the analyst consensus estimate of 28 cents.
Quarterly sales of $2.101 billion, up 28% year over year (Y/Y), outpaced the Street view of $1.997 billion.
Amer Sports reported that all four regions experienced double-digit revenue growth in the fourth quarter, led by Greater China, which grew 42%.
CEO James Zheng stated, “Fourth quarter was a great finish to a breakout year for Amer Sports led by our flagship Arc’teryx brand and rising star Salomon, which surpassed the $2 billion sales mark. In 2025 we delivered 27% revenue growth and more than 150 basis points of operating margin expansion, with double-digit growth across all segments, regions, and channels.”
Segment Performance
Technical Apparel sales grew 34% Y/Y, with an omni-comp growth of 16% Y/Y. The segment benefited from broad-based strength across regions, categories, and channels.
Outdoor Performance sales grew 29% Y/Y on continued excellent momentum in Salomon footwear and strong performance from Winter Sports Equipment.
Ball & Racquet Sports sales increased 14% Y/Y, led by Softgoods and Baseball performance.
Margins
Adjusted gross margin increased 140 basis points Y/Y to 57.8% in the quarter.
Adjusted operating profit grew 18% Y/Y to $263 million; however, the margin decreased 110 basis points Y/Y to 12.5% in the quarter.
Technical Apparel margins increased 160 bps Y/Y to 25.9%, while Outdoor Performance margins contracted 490 bps to 6.2%.
Cash and cash equivalents totaled $652 million at year’s end, while net debt stood at $291 million.
Wilson Names Carrie Ask CEO
Wilson Sporting Goods Co., a wholly owned subsidiary and flagship brand of Amer Sports, will see a leadership change effective March 1, 2026. Carrie Ask has been appointed president and CEO of Wilson and will join the Amer Sports executive committee.
Andrew Page, who has served as interim president and CEO of Wilson since September 2025 while also acting as Amer Sports’ CFO, will step down from the interim role and continue as group CFO, focusing on advancing the company’s growth strategy.
Outlook
Amer Sports said it expects fiscal 2026 earnings of $1.10 to $1.15 per share, compared with analysts’ consensus estimate of $1.15 per share. The company forecast full-year sales of $7.617 billion to $7.748 billion, above the $7.492 billion analyst estimate.
For the first quarter of fiscal 2026, Amer Sports projects earnings of 28 cents to 30 cents per share, below the 32-cent analyst estimate. It expects quarterly sales of $1.797 billion to $1.827 billion, ahead of the $1.755 billion consensus forecast.
CFO Andrew Page stated, “Ending 2025 with only 0.3x net leverage and more than $700 million operating cash flow, we believe our financial foundation has never been stronger. Looking ahead, given the continued momentum from our highest-margin Arc’teryx franchise, accelerating Salomon footwear growth, plus the solid foundation of our equipment franchises, we are confident in our ability to deliver another strong financial performance in 2026.”
AS Price Action: Amer Sports shares were down 4.42% at $38.70 at the time of publication on Tuesday.
Photo via Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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