Amer Sports Inc (NYSE:AS) stock rose 1.79% (As on May 21, 11:22:30 AM UTC-4, Source: Google Finance) after the company reported better-than-expected first quarter results and raised the full year revenue and EPS expectations. This updated guidance assumes that the current 30% tariff on goods arriving to the U.S. from China and 10% tariff on all other countries will stay in place for the remainder of 2025. Technical Apparel increased 28% to $664 million, or increased 32% on a constant currency basis. This reflects an omni-comp growth of 19%. Outdoor Performance increased 25% to $502 million, or increased 29% on a constant currency basis. Ball & Racquet Sports increased 12% to $306 million, or increased 13% on a constant currency basis. Adjusted gross margin increased 330 basis points to 58.0%. Adjusted operating profit increased 79% to $232 million. Adjusted operating margin by segment, technical Apparel increased 110 basis points to 23.8%, Outdoor Performance increased 990 basis points to 14.7% and Ball & Racquet Sports increased 270 basis points to 6.6%. Adjusted net income increased from $50 million to $148 million. Year-over-year inventories increased 15% to $1,267 million. Net debt was $515 million, and cash and cash equivalents totaled $422 million at quarter end.
AS in the first quarter of FY25 has reported the adjusted earnings per share of 27 cents, beating the analysts’ estimates for the adjusted earnings per share of 19 cents. The company had reported the adjusted revenue growth of 23 percent to $1.47 billion in the first quarter of FY25. The results were driven by demand for Arc’teryx and Salomon products as well as strong performance in its technical apparel, whose revenue rose 28 percent to $633 million, and outdoor performance, which lifted 25 percent to $502 million.
The company raised its 2025 financial outlook, with revenue in the fiscal year ending Dec. 31 expected to grow 15 to 17 percent. The company has beaten revenue estimates four times in the most recent four quarters.
In addition, CFO Andrew Page said that he expects tariffs to have a “negligible” impact on the company’s profit guidance, adding that its current momentum, “strong pricing” positions and wide retail footprint will allow it to offset higher costs. Amer Sports raised $1.6 billion last year when it completed its initial public offering. In 2024, the athletic apparel and equipment company saw net income of $73 million with full-year revenue of $5.18 billion.