Amer Sports Inc (NYSE:AS) stock rose 6.13% (As on November 19, 11:58:38 AM UTC-4, Source: Google Finance) after the company reported third-quarter earnings that significantly exceeded analyst expectations, driven by exceptional growth across all segments and regions. Geographic performance was robust, with Greater China leading the way at 47% growth, while Asia Pacific increased 54%. All four regions achieved double-digit revenue growth during the quarter. The company’s adjusted operating margin expanded 130 basis points to 15.7%, demonstrating improved profitability alongside its rapid growth. Salomon footwear continues to add a strong second leg of profitable growth to Arc’teryx’s already exceptional trajectory, significantly elevating the financial profile and long-term value creation potential of the Amer Sports portfolio. Technical Apparel increased 31% to $683 million, or increased 32% on a constant currency basis. This reflects an omni-comp 2 growth of 27%. Outdoor Performance increased 36% to $724 million, or increased 32% on a constant currency basis. Ball & Racquet Sports increased 16% to $350 million, or increased 16% on a constant currency basis. Adjusted net income attributable to equity holders of the Company increased 161% to $185 million. Year-over-year inventories increased 28% to $1,710 million. Net debt was $800 million, and cash and cash equivalents totaled $353 million at quarter end.

AS in the third quarter of FY25 has reported the adjusted earnings per share of 33 cents, beating the analysts’ estimates for the adjusted earnings per share of 25 cents. The company had reported the adjusted revenue growth of 30 percent to $1.76 billion in the third quarter of FY25, beating the analysts’ estimates for revenue of $2.47 billion. Adjusted gross margin increased 240 basis points to 57.9%. Adjusted operating profit increased 41% to $275 million. Adjusted operating margin increased 130 basis points to 15.7%. Adjusted operating margin by segment, includes Technical Apparel decreased 100 basis points to 19.0%, Outdoor Performance increased 420 basis points to 21.7% and Ball & Racquet Sports increased 70 basis points to 7.6%.

Amer Sports raised its full-year 2025 outlook, now expecting revenue growth of 23-24% and adjusted EPS of $0.88-0.92. The company also provided an early look at 2026, projecting revenue growth toward the high end of its long-term algorithm of low-double-digit to mid-teens annual sales growth. FY 25 CapEx is expected to be approximately $300 million, Gross margin to be approximately 58% and Operating margin to be between 12.5% – 12.7%.