Amer Sports 2025 Q2 Earnings Strong Performance as Net Income Surges 1344.4%

Amer Sports reported its fiscal 2025 Q2 earnings on Aug 20th, 2025, delivering a strong performance with a significant turnaround in profitability. The results beat expectations and prompted the company to raise its 2025 guidance, reflecting confidence in sustained momentum across key business segments.

Amer Sports delivered a strong performance, with total revenue rising 23.5% year-over-year to $1.24 billion in the second quarter of 2025. The increase was driven by robust performance across all major business segments. The Technical Apparel division led the revenue growth with $508.90 million, followed closely by Outdoor Performance with $413.70 million. Ball & Racquet Sports also contributed $313.70 million to the top line, underscoring broad-based strength in the company’s portfolio.

The company achieved a remarkable turnaround, with earnings per share (EPS) jumping to $0.03 in 2025 Q2 from a loss of $0.01 per share in the same period the previous year—a 400.0% positive swing. Net income surged to $22.40 million in 2025 Q2, reversing a net loss of $1.80 million in 2024 Q2, a 1344.4% improvement. This marked the third consecutive year of profitability for the company, reinforcing its operational resilience and strategic execution. The EPS growth highlights the company’s strong recovery and profitability.

The stock price of Amer Sports experienced mixed near-term performance. It climbed 3.25% during the latest trading day, but dropped 4.89% over the most recent full trading week and edged down 2.65% month-to-date.

The strategy of buying Amer Sports (AS) shares 30 days after the earnings release date has historically delivered strong returns. Over the past three years, this approach generated an overall return of 131.83%, outperforming the benchmark return of 23.00% by 108.83%. The compound annual growth rate (CAGR) stood at 84.81%, indicating robust growth. While the strategy had a maximum drawdown of 0.00%, it was marked by relatively high volatility of 56.36% and a Sharpe ratio of 1.50, suggesting a moderate level of risk for the returns achieved.

Jie Zheng, CEO & Director, highlighted the strong business performance, noting a 23% sales increase and a 260 bps operating margin expansion, driven by the momentum in Arc'teryx and Salomon. He emphasized strategic priorities, including store expansion, innovation in footwear and women's categories, and leveraging the direct-to-consumer model. Zheng expressed confidence in managing tariffs and macroeconomic uncertainties, citing premium pricing power and low U.S. exposure. He outlined optimism for long-term growth, stressing Arc'teryx's store optimization, Salomon's global sneaker expansion, and Wilson’s potential under new leadership. The CEO underscored the importance of brand innovation, community engagement, and geographic diversification, particularly in China, to sustain momentum.

Amer Sports raised 2025 guidance, expecting revenue growth of 20% to 21%, adjusted gross margin of ~57.5%, and adjusted operating margin of 11.8% to 12.2%. Full-year adjusted diluted EPS guidance increased to $0.77 to $0.82. Q3 revenue growth is expected at ~20%, with adjusted gross margin of ~56.5% and adjusted operating margin between 12% and 13%. CapEx is projected at $300 million, and full-year net finance costs at ~$105 million. The effective tax rate is expected to be 28% to 30%.

Additional News
Nigeria’s political and economic landscape featured significant developments in the week following Amer Sports’ earnings release. On August 21, 2025, Japanese Prime Minister Shigeru Ishiba pledged $5.5 billion in support for Nigeria and other African nations through a collaborative framework with the African Development Bank. Meanwhile, in a major humanitarian effort, Abubakar Tafawa Balewa University Teaching Hospital in Bauchi disclosed that 897 kidney patients across the northeastern region had benefited from subsidized dialysis. In a separate development, the Federal Ministry of Youth Development launched a nationwide initiative to train 100,000 youths in financial literacy in partnership with Investonaire Academy.