HELSINKI - Amer Sports, a leading global sports and outdoor brand group, disclosed a significant year-over-year revenue increase of 60% for the Golden Week period in Greater China, according to a statement made by CEO James Zheng at an investor meeting in Shanghai on Tuesday. The surge in sales, spanning from October 1 to October 7, 2024, is attributed to the successful performance of its brands Salomon, Wilson, and Arc'teryx, particularly in store sales.
The company, which oversees a portfolio of premium brands such as Arc'teryx, Salomon, Wilson, Peak Performance, and Atomic, has emphasized its focus on the Chinese market, where it sees considerable growth potential, especially in the outdoor segment. This optimism persists despite current economic challenges, and the company's strong performance during the Golden Week is seen as a testament to its resilience and strategic positioning.
In 2023, Amer Sports reported a revenue of $4.4 billion and maintains a global workforce of over 11,400 employees. With corporate offices across Helsinki, Munich, Kraków, New York, and Shanghai, Amer Sports operates in over 40 countries and sells its products in more than 100 countries. The company's shares are traded on the New York Stock Exchange.
While the press release includes forward-looking statements regarding the company's expectations for business plans and operating results, it is important to note that these are subject to various risks and uncertainties that could affect actual outcomes. The company has outlined its intent to continue engaging with shareholders and maintaining transparency in its operations and growth strategies.
The information provided is based on a press release statement from Amer Sports.
In other recent news, Amer Sports Inc. has been making notable strides in its financial performance. The company's second-quarter results exceeded expectations, with a significant revenue beat and an adjusted EBITDA that surpassed forecasts. This success was largely attributed to the robust performance of brands like Arc'teryx and Salomon's soft goods, as well as expansion in China.
Baird, BofA Securities, Wells Fargo, Deutsche Bank, and Citi have all maintained their positive ratings on Amer Sports, highlighting the company's strong momentum. Amer Sports has also raised its full-year guidance, anticipating improved performance in the Americas, particularly in the fourth quarter.
Despite an operating loss, the company's adjusted operating profit increased by 40%, and the net loss decreased substantially. Amer Sports' strong performance exceeded analyst expectations, posting adjusted earnings per share of $0.05, beating estimates for a loss.
In response to these positive results, Amer Sports has adjusted its full-year outlook, now anticipating revenue growth of 15-17%. These recent developments underscore Amer Sports' ability to maintain growth and profitability in a challenging consumer environment.
InvestingPro Insights
Amer Sports' impressive 60% revenue growth during China's Golden Week aligns with several key financial indicators from InvestingPro. The company's market capitalization stands at $8.68 billion, reflecting its significant presence in the global sports and outdoor brand market.
InvestingPro data shows that Amer Sports has experienced strong revenue growth, with a 17.32% increase over the last twelve months as of Q2 2024, reaching $4.638 billion. This trend is consistent with the company's reported success in China and its overall growth strategy.
An InvestingPro Tip highlights that Amer Sports' net income is expected to grow this year, which could be partly driven by its strong performance in key markets like China. Additionally, the company operates with a moderate level of debt, potentially providing financial flexibility to support its expansion plans.
It's worth noting that Amer Sports has seen a significant return over the last week, with a 10.74% price increase, and an even more impressive 60.54% return over the last three months. These figures suggest that investors are responding positively to the company's recent performance and growth prospects.
For readers interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for Amer Sports, providing deeper insights into the company's financial health and market position.
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