Amer Sports' Q4 2024: Navigating Contradictions in Store Expansion, Footwear Growth, and Tax Rate Forecasts

These are the key contradictions discussed in Amer Sports' latest 2024Q4 earnings call, specifically including: Store Expansion Strategy, Footwear Growth Strategy, and Tax Rate Expectations:



Strong Financial Performance Across Brands:
- Amer Sports generated 18% revenue growth in 2024, with 23% sales growth in Q4, driven by strong performance in Technical Apparel and Outdoor Performance segments.
- Growth was attributed to the strong momentum across all brands, particularly Arc'teryx, and geographic expansion, especially in Great China and APAC.

Arc'teryx Brand Momentum:
- Arc'teryx, the fastest-growing and largest brand, achieved over $2 billion in 2024 sales and continued strong growth in Q4, with double-digit growth in women's and footwear categories.
- This momentum was driven by the brand's direct-to-consumer model, innovative products, and strategic retail expansion, including the opening of 33 new stores globally.

Salomon Footwear and Apparel Growth:
- Salomon footwear and apparel represented 2/3 of the Outdoor Performance segment in 2024, with over $1 billion in sales, showing growth in regions like Great China, APAC, and EMEA.
- Growth was fueled by demand recovery in Europe, increased preorders, and the expansion of direct-to-consumer channels, particularly in Asia.

Improved Profitability and Margin Expansion:
- Amer Sports reported a 330 basis point increase in adjusted operating margin from Q4 2023, driven by favorable product, channel, and regional mix, along with lower discounting and freight costs.
- The company achieved an adjusted gross margin of 56.4% in Q4, primarily due to the strong performance of high-margin Arc'teryx products and favorable regional sales distributions.

Inventory Management and Strategic Store Expansion:
- Inventory levels rose 11% in 2024, significantly below the 18% sales growth, indicating disciplined inventory management.
- Arc'teryx plans to open 25 to 30 new stores in 2025, with a focus on expanding in key markets like China, Europe, and the U.S., supporting continued strong revenue growth and consumer engagement.