Amer Sports Sees Strong Growth in Footwear at Arc'teryx, Plans 25 Net New Stores

Amer Sports reported Q2 net income of $18.2 million, up from $13.6 million YoY, driven by strong growth in footwear sales at Arc'teryx, Salomon, and Wilson. The company expects 20% revenue growth in Q3 and 20-21% growth for the full year, with diluted EPS between 77-82 cents. The CFO noted that footwear sales at Arc'teryx are growing faster than the brand itself.

Amer Sports, the parent company of Arc’teryx and Salomon footwear, has reported robust second-quarter (Q2) financial results, highlighting strong growth in its footwear segment. The company's net income for the period ended June 30 was $18.2 million, up from a net loss of $3.7 million a year ago [1].

Revenue for the quarter rose by 23.5% to $1.24 billion, driven by significant growth in the outdoor performance segment, which includes Arc’teryx and Salomon footwear. The outdoor performance revenue increased by 32% on a constant currency basis, while technical apparel revenue rose by 23% and ball and racquet revenue increased by 10% [1].

For the full year ending December 31, 2025, Amer Sports expects revenue growth of between 20% and 21%, with gross margin at 57.5% and diluted earnings per share (EPS) between 77 cents and 82 cents [1]. The company is also projecting a 20% increase in revenue for the third quarter, with diluted EPS expected to be between 20 cents and 22 cents [1].

The company's CFO, Andrew Page, noted that footwear sales at Arc’teryx are growing faster than the brand itself. He attributed the strong performance to the launch of the brand's in-house design division for footwear, which has seen growth rise from 6% to 10% almost overnight [2].

Salomon, another key brand under Amer Sports, has seen growth in its heritage hiking and trail shoe category, as well as in its running platform. The running platform includes gravel running shoes with treads designed for switching from asphalt to gravel and back, as well as road running shoes engineered for comfort. Both the gravel and the running platforms have been well received in North America and Europe, while the heritage hiking and trail shoe category resonates with the streetwear crowd in Greater China and APAC [2].

Despite higher-than-expected tariffs, Amer Sports remains confident in its ability to navigate the higher tariff backdrop. The company's low concentration of U.S.-based revenue and strong relationships with vendor partners provide multiple levers for growth. "We believe that we have a number of levers that we can pull to deal with a multitude of different tariff scenarios," said CFO Andrew Page [2].

The company is also exploring potential acquisitions to build out its brand portfolio. "We definitely look at opportunities as inbounds come to us," said Page, noting that the criteria include an analysis of whether Amer Sports would be better owners of the brand and whether the company's core competencies would help accelerate its growth [2].

References:
[1] https://wwd.com/footwear-news/shoe-industry-news/amer-sports-q2-earnings-arcteryx-salomon-guidance-raise-1238057573/
[2] https://wwd.com/footwear-news/shoe-industry-news/amer-sports-cfo-andrew-page-salomon-arcteryx-growth-1238057838/