Amer Sports 2025 Q2 Earnings Strong Performance with 1344.4% Net Income Surge

Amer Sports delivered a strong performance in Q2 2025, significantly improving from a net loss in the same period last year. The company exceeded expectations by turning a $1.80 million net loss into a $22.40 million profit, marking a 1344.4% increase. This robust turnaround, coupled with a 23.5% revenue growth to $1.24 billion, underscores improved operational efficiency and market resilience. Amer Sports raised its full-year guidance, signaling confidence in sustained momentum.

Revenue
Amer Sports reported a 23.5% year-over-year revenue increase, reaching $1.24 billion in Q2 2025. Technical Apparel led with $508.90 million, demonstrating its strong market position, while Outdoor Performance and Ball & Racquet Sports contributed $413.70 million and $313.70 million, respectively. The performance across all segments highlighted the company’s diversified revenue streams and the effectiveness of its product mix strategy.

Earnings/Net Income
Amer Sports returned to profitability with an EPS of $0.03 in Q2 2025, a stark improvement from a $0.01 loss per share in the prior-year period, representing a 400.0% positive change. The company also achieved a net income of $22.40 million, a 1344.4% increase from a $1.80 million loss in Q2 2024. This dramatic turnaround, along with three consecutive years of sustained profitability, demonstrated a resilient and well-managed business model.

Price Action
The stock of Amer Sports has experienced mixed trading dynamics, rising 0.68% on the latest trading day but declining 4.59% over the most recent week and 7.10% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Amer Sports (AS) shares upon its revenue raise announcement and holding for 30 days has shown moderate returns over the past three years. This approach generated a compound annual growth rate (CAGR) of 12.8%, slightly underperforming the S&P 500’s CAGR of 14.2% over the same period. The strategy’s Sharpe ratio of 0.9 indicates favorable risk-adjusted returns. However, the maximum drawdown of -26.6% during the 2022 downturn highlights the stock’s vulnerability to market downturns.

CEO Commentary
Jie Zheng, CEO & Director, emphasized the company’s strong Q2 performance, driven by Arc’teryx’s footwear acceleration, Salomon’s momentum, and Wilson’s technical growth. Zheng highlighted Amer Sports’ ability to navigate tariffs and macroeconomic challenges, leveraging premium pricing power and low U.S. exposure as strategic advantages. The CEO outlined key initiatives, including expanding Arc’teryx’s global retail footprint, optimizing China’s store network, and enhancing community engagement. Zheng expressed optimism about Salomon’s sneaker growth and Wilson’s soft goods potential, reinforcing the brand’s differentiated position in China.

Guidance
Amer Sports raised its 2025 full-year revenue guidance to a 20%–21% growth rate (from 15%–17%) and adjusted EPS to $0.77–$0.82 (from $0.67–$0.72), with Q3 revenue growth expected at 20%. Outdoor Performance sales growth guidance was increased to 22%–25%, while Technical Apparel and Ball & Racquet guidance rose to 22%–25% and 7%–9%, respectively. Adjusted gross margin guidance was lifted to 57.5%, and operating margin guidance to 11.8%–12.2%. CapEx is expected to reach $300 million, with net finance costs at $105 million and an effective tax rate of 28%–30%.

Additional News
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