Amer Sports Q3 2024: A Quarter of Growth and Leadership Changes
Wednesday, Nov 20, 2024 2:41 am ET
4min read Amer Sports Inc. (NYSE: AS) reported strong financial results for the third quarter of 2024, with sales, adjusted margins, and EPS above expectations. The company's unique portfolio of premium technical brands continues to create white space and take market share in sports and outdoor markets around the world, led by Arc'teryx's standout growth and profitability. The Ball & Racquet segment also accelerated to double-digit growth, contributing to the overall market-leading franchise's success. Amer Sports raised its full-year guidance, expecting revenues to grow between 16 and 17 percent for the year.
Key highlights from the Q3 2024 earnings report include:
- Revenue increased 17% to $1,354 million, with constant currency growth of 17%.
- Gross margin increased 420 basis points to 55.2%, and adjusted gross margin increased 410 basis points to 55.5%.
- Operating profit increased 69% to $177 million, and adjusted operating profit increased 46% to $195 million.
- Net income increased 257% to $56 million, or $0.11 diluted earnings per share, and adjusted net income increased 651% to $71 million, or $0.14 diluted earnings per share.
- Arc'teryx's revenue surged 34% year-over-year to $520 million, with omni-channel growth of 20%.
- The Ball & Racquet segment grew 11% to $300 million, with an operating margin increase of 600 basis points to 6.9%.
Amer Sports also announced two leadership changes to its executive structure. Effective January 1, 2025, Guillaume Meyzenq, currently Chief Product Officer for Salomon, will be appointed President and CEO for Salomon. Additionally, Michael Hauge Sørensen, Chief Operating Officer for Amer Sports, has decided to step down from his current position and will return to his former role as advisor to the Board of Directors of Amer Sports.
CFO Andrew Page expressed confidence in the company's initial 2025 outlook, expecting results consistent with its long-term financial algorithm of low-double-digit to mid-teens annual revenue growth and 30-70+ bps of annual adjusted operating margin expansion driven by gross margin expansion.
In conclusion, Amer Sports' strong Q3 2024 performance, driven by Arc'teryx's standout growth and the Ball & Racquet segment's acceleration, led to an increase in full-year guidance. The company's focus on premium technical brands and market-leading franchise execution, combined with strategic leadership changes, positions Amer Sports well for continued success in the sports and outdoor markets.
Key highlights from the Q3 2024 earnings report include:
- Revenue increased 17% to $1,354 million, with constant currency growth of 17%.
- Gross margin increased 420 basis points to 55.2%, and adjusted gross margin increased 410 basis points to 55.5%.
- Operating profit increased 69% to $177 million, and adjusted operating profit increased 46% to $195 million.
- Net income increased 257% to $56 million, or $0.11 diluted earnings per share, and adjusted net income increased 651% to $71 million, or $0.14 diluted earnings per share.
- Arc'teryx's revenue surged 34% year-over-year to $520 million, with omni-channel growth of 20%.
- The Ball & Racquet segment grew 11% to $300 million, with an operating margin increase of 600 basis points to 6.9%.
Amer Sports also announced two leadership changes to its executive structure. Effective January 1, 2025, Guillaume Meyzenq, currently Chief Product Officer for Salomon, will be appointed President and CEO for Salomon. Additionally, Michael Hauge Sørensen, Chief Operating Officer for Amer Sports, has decided to step down from his current position and will return to his former role as advisor to the Board of Directors of Amer Sports.
CFO Andrew Page expressed confidence in the company's initial 2025 outlook, expecting results consistent with its long-term financial algorithm of low-double-digit to mid-teens annual revenue growth and 30-70+ bps of annual adjusted operating margin expansion driven by gross margin expansion.
In conclusion, Amer Sports' strong Q3 2024 performance, driven by Arc'teryx's standout growth and the Ball & Racquet segment's acceleration, led to an increase in full-year guidance. The company's focus on premium technical brands and market-leading franchise execution, combined with strategic leadership changes, positions Amer Sports well for continued success in the sports and outdoor markets.
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