Amer Sports Q2: Salomon Sees Rapid Growth.

Amer Sports reported strong Q2 results, beating expectations and raising guidance for 2025. The company's Salomon brand entered rapid growth mode, contributing to the strong performance. Amer Sports continues to demonstrate its ability to adapt and grow in the sports industry.

Amer Sports, a leading sports equipment and footwear company, has reported robust Q2 results, surpassing market expectations and raising its full-year 2025 guidance. The company's strong performance is driven by the rapid growth of its Salomon brand and its ability to adapt to market challenges, including higher-than-expected tariffs.

The company's CFO, Andrew Page, announced that Amer Sports is increasing its full-year 2025 revenue, margin, and earnings per share (EPS) expectations. The updated guidance assumes that the current 30 percent incremental U.S. tariff on goods from China, along with the current tariff rates on all other countries, will remain in place for the remainder of 2025 [1].

For the three months ended June 30, Amer Sports reported net income of $18.2 million, or 3 cents per diluted share, compared to a net loss of $3.7 million, or 1 cent, in the same period last year. On an adjusted basis, net income was $36 million, or 6 cents per diluted share. Revenue rose 23.5 percent to $1.24 billion from $1.00 billion [1].

The outdoor performance segment, which includes the Salomon brand, contributed significantly to the company's growth. Revenue in this segment rose 32 percent to $414 million on a constant currency basis. Technical apparel revenue also grew 23 percent to $509 million, while ball and racquet revenue increased 10 percent to $314 million [1].

For the six months ended June 30, net income skyrocketed to $152.8 million, or 27 cents per diluted share, from net income of $1.4 million, or 0.0 cents, in the same period last year. Revenue rose 23.5 percent to $2.71 billion from $2.19 billion [1].

Looking ahead, Amer Sports expects revenue growth of between 20 percent to 21 percent for the year ending Dec. 31, 2025, with gross margin at 57.5 percent and diluted EPS at between 77 cents and 82 cents. The outdoor performance segment is forecasted to grow revenue by 22 percent to 25 percent, while technical apparel revenue growth is guided to an increase of 22 percent to 25 percent. Revenue at ball and racquet is expected to rise between 7 percent and 9 percent [1].

In addition to its strong financial performance, Amer Sports also announced that Joe Dudy, a 30-year veteran at Wilson and Amer Sports, has stepped down as president and chief executive officer of Wilson, effective Aug. 31. He will continue to serve as an advisor through March 1, 2026. Amer's CFO, Andrew Page, will take on the role of interim president and CEO of Wilson and the ball and racquet segment during the company's executive search for a replacement [1].

Wall Street's sentiment on Amer Sports' growth prospects has been bullish, particularly due to the growing momentum with the company's Salomon sneakers and with footwear as the fastest-growing category at its Arc’teryx brand [1].

References:
[1] https://wwd.com/footwear-news/shoe-industry-news/amer-sports-q2-earnings-arcteryx-salomon-guidance-raise-1238057573/