Sports & Recreation Apparel in Favor Boosts Ameren Sports (AS.US) Q3 Earnings Again
1min read Finnish sports equipment maker Ameren Sports (AS.US) reported its third-quarter earnings before the market opened on Tuesday. The data showed that the company's revenue in the quarter was $1.35 billion, topping analysts' expectations of $1.3 billion. Direct-to-consumer (DTC) revenue was $480 million, compared to the consensus of $440.6 million. Adjusted EPS was 14 cents, topping analysts' expectations of 10 cents. The better-than-expected results suggest the manufacturer is on track to meet or exceed its full-year financial expectations.
The company, which owns brands such as Wilson, Salomon and Arc'Teryx, is a shareholder of China's largest sportswear producer, Anta Sports. Based on its strong quarterly performance, the company thus narrowed its full-year revenue growth expectation from 15%-17% to 16%-17%. It expects adjusted EPS to be between 43-45 cents this year, topping its previous guidance of 40-44 cents.
Notably, this is the second consecutive quarter that the company has exceeded earnings expectations, as Chinese consumers have started to favor niche sports and leisure brands amid a broader trend of overall consumer spending slowdown.
While Chinese consumers' overall spending has been hit by the pandemic, other brands such as yoga equipment maker Lululemon Athletica (LULU.US), footwear company Hoka and skiwear brand Descente Ltd. have performed well. According to Hangzhou Zhiyi Technology, a research firm, the brands' momentum was apparent in the 12 months ending September, with all their Tmall stores seeing double-digit growth.
The trend suggests Chinese consumers are shifting from luxury to more comfortable and affordable brands. The pandemic's legacy of working from home has also created a relaxed, comfortable era, driving the development of sports and leisure brands.