Amer Sports (AS) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered record results with revenue up 23% year-over-year to $1,473 million, exceeding expectations and driven by strong performance from Arc'teryx, Salomon, and Wilson Tennis 360 across all regions and channels.

• Adjusted margins and EPS were well above expectations, prompting an increase in full-year 2025 revenue and EPS guidance.

• Direct-to-consumer (DTC) channels drove significant growth, especially in Greater China and APAC, with store count up 49% to 518.

• Premium brands, technical innovation, and strong positioning in high-growth segments underpin confidence for continued momentum.

Financial highlights

• Q1 sales grew 23% year-over-year to $1,473 million (26% in constant currency), with adjusted gross margin up 330 basis points to 58%.

• Adjusted operating margin rose to 15.8% from 10.9% year-over-year.

• Adjusted net income was $148 million, up from $50 million last year; adjusted diluted EPS was $0.27 vs. $0.11.

• Adjusted EBITDA margin expanded to 20.3% from 15.2% in the prior year.

• Operating cash flow reached $422 million; net debt reduced to $515 million, with cash at $422 million and net debt/Adjusted EBITDA at 0.5x.

Outlook and guidance

• Full-year 2025 guidance: revenue growth 15%-17%, gross margin 56.5%-57%, operating margin 11.5%-12%, adjusted diluted EPS $0.67-$0.72.

• Q2 2025 guidance: revenue growth 16%-18%, gross margin 57%-58%, operating margin 3%-4%, adjusted EPS $0.00-$0.02.

• Technical apparel revenue growth guidance raised to 20%-22%; outdoor performance to mid-teens; ball and racket to mid-single-digits.

• Guidance assumes U.S. tariffs on China at 30% and mitigation strategies expected to offset impact.

• CapEx for 2025 projected at $300 million, mainly for store expansion and logistics.