AS — Amer Sports, Inc.

Summary of Amer Sports Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Revenue Growth: Amer Sports reported a 27% increase in revenue for 2025, totaling $6.6 billion, with Q4 sales growing 28%.
• Adjusted Operating Margin: Expanded by 170 basis points to 12.8% for the year, but declined by 110 basis points to 12.5% in Q4 due to increased SG&A investments.
• Gross Margin: Adjusted gross margin rose 140 basis points to 57.8% in Q4.
• Net Income: Adjusted net income for Q4 was $176 million, with diluted EPS at $0.31, up from $0.17 in the prior year.
• Debt Position: Ended 2025 with $291 million in net debt, resulting in a net leverage ratio of 0.3 times.

2. Strategic Updates and Business Highlights:

• Brand Performance:
  • Arc’teryx: Strong growth in technical apparel, with Q4 sales up 34%. Women's apparel grew 40%, and footwear saw nearly 40% growth.
  • Salomon: Surpassed $2 billion in sales, with a 35% increase in 2025. Strong demand in sportstyle and performance footwear, particularly in Asia.
  • Wilson: Revenue increased 14%, driven by softgoods and a return to growth in baseball.
• Store Expansion: Opened 15 new Arc’teryx stores in Q4 and 33 new Salomon stores in Greater China, with plans for continued expansion in 2026.
• Leadership Changes: New appointments include Carrie as President and CEO of Wilson and Avery Baker as Chief Brand Officer for Arc’teryx.

3. Forward Guidance and Outlook:

• 2026 Revenue Growth: Expected to be between 16-18%, with a favorable FX impact contributing 200 basis points.
• Adjusted Operating Margin: Projected to be between 13.1% to 13.3% for the year, reflecting ongoing investments in Salomon.
• Q1 2026 Guidance: Anticipated revenue growth of 22-24%, with adjusted gross margin around 59% and adjusted EPS of $0.28 to $0.30.

4. Bad News, Challenges, or Points of Concern:

• Margin Pressure: The decline in adjusted operating margin in Q4 was attributed to increased SG&A expenses related to investments in Salomon, which may affect short-term profitability.
• Inventory Levels: Inventory increased by 33% year-over-year, slightly outpacing sales growth, raising concerns about potential overstock.
• Tariff Impact: While Amer Sports is well-positioned to manage tariff scenarios, there are concerns about potential impacts on the ball and racket and winter sports equipment segments.

5. Notable Q&A Insights:

• Salomon Investments: Management emphasized that investments made in Q4 to support Salomon's growth will continue into Q1, impacting margins but expected to yield long-term benefits.
• Regional Growth: Salomon is seeing strong growth in all regions, particularly in Asia and North America, with plans for strategic partnerships to enhance market share.
• Tariff Management: The company remains confident in its ability to navigate tariff challenges, with minimal impact expected on pricing and operations.
• Future Growth Opportunities: Management highlighted the potential for further growth in the US market for Salomon, particularly through an omnichannel strategy that includes both DTC and wholesale partnerships.

Overall, Amer Sports demonstrated strong financial performance and growth across its brands in 2025, with a strategic focus on expanding market share and investing in key growth opportunities, despite some challenges related to margins and inventory management.