Amer Sports (AS) Q4 2024 earnings summary

Executive summary

• Fourth quarter revenue rose 23% year-over-year to $1.64 billion, with all segments and geographies contributing to growth and adjusted margins and EPS exceeding expectations.

• Fiscal year 2024 revenue increased 18% to $5.2 billion, driven by strong performance in Technical Apparel and expansion in Asia Pacific, North America, and EMEA.

• All major brands (Arc'teryx, Salomon, Wilson) saw accelerating momentum, with Arc'teryx surpassing $2B in sales and Salomon sneakers exceeding $1B.

• Direct-to-consumer (D2C) channel led growth, up 46% in Q4, with strong regional performance in Greater China (+54%) and APAC (+52%).

• Adjusted margins and EPS exceeded guidance, with significant free cash flow enabling notable debt reduction.

Financial highlights

• Q4 adjusted operating margin expanded to 13.6% from 10.3% a year ago; adjusted gross margin increased 370 bps to 56.4%.

• Adjusted net income was $90 million in Q4, up from a $31 million loss last year; adjusted diluted EPS was $0.17, compared to a loss of $0.08.

• Net debt reduced to $591 million from $1.99 billion at Q3, with leverage ratio declining from over 5x to ~1x.

• Generated $425 million in operating cash flow and $150 million in free cash flow for 2024.

• FY24 adjusted EBITDA margin was 15.6%, up from 13.9% in FY23.

Outlook and guidance

• FY25 revenue growth expected at 13–15%, with a 250 bps FX headwind; adjusted gross margin guided at 56.5–57%, operating margin at 11.5–12%, and EPS of $0.64–$0.69.

• Q1 2025 revenue growth expected at 14–16%, with adjusted EPS of $0.14–$0.15 and gross margin 56.5–57%.

• Technical Apparel segment targeted for ~20% revenue growth and ~21% margin in 2025.

• CapEx for 2025 expected at ~$300 million, in line with 2024; net finance cost at ~$120 million.