Amer Sports Q2 Revenue Misses Estimates on Slow Arc'teryx Growth

Amer Sports shares fell 6.7% after its Technical Apparel unit, which houses Arc'teryx, posted the slowest sales growth on record. Sales rose 25% in Q2, meeting estimates, but growth is projected to fall further. The company raised its full-year outlook for revenue and earnings, citing favorable exchange rates and resilient consumer demand. Despite economic concerns, Amer Sports hasn't seen a slowdown in the US or China.

Amer Sports shares fell 6.7% after its Technical Apparel unit, which houses Arc'teryx, posted the slowest sales growth on record. Sales rose 25% in Q2, meeting estimates, but growth is projected to fall further. The company raised its full-year outlook for revenue and earnings, citing favorable exchange rates and resilient consumer demand. Despite economic concerns, Amer Sports hasn't seen a slowdown in the US or China [1].

The company reported net income for the three months ended June 30 of $18.2 million, or 3 cents a diluted share, up from a net loss of $3.7 million a year ago. Revenue rose 23.5% to $1.24 billion. Outdoor performance revenue rose 32%, technical apparel revenue rose 23%, and ball and racquet revenue rose 10% [1].

For the year ending Dec. 31, 2025, revenue growth is expected to be between 20% to 21%, with gross margin at 57.5% and diluted EPS at between 77 cents and 82 cents. The outdoor performance segment is forecasted to grow revenue at up 22% to 25%, while technical apparel revenue growth is guided to an increase of 22% to 25% [1].

However, the company's Technical Apparel unit, which includes Arc'teryx, posted the slowest sales growth on record, with sales rising 25% in Q2. This is a significant slowdown from the 32% growth in the outdoor performance segment and the 23% growth in technical apparel revenue [1].

The company cited favorable exchange rates and resilient consumer demand as reasons for the overall positive outlook. Despite economic concerns, Amer Sports hasn't seen a slowdown in the US or China [1].

The company 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. Amer's CFO 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].

References:
[1] https://wwd.com/footwear-news/shoe-industry-news/amer-sports-q2-earnings-arcteryx-salomon-guidance-raise-1238057573/
[2] https://www.fxstreet.com/news/the-home-depot-advances-2-despite-missing-q2-earnings-comparable-sales-202508191324