HELSINKI - Amer Sports Inc. (NYSE: AS), the parent company of well-known brands such as Arc’teryx, Salomon, and Wilson, has reported strong financial results for the second quarter of 2024. The company saw a significant 16% increase in revenue to $994 million compared to the same period last year, with a substantial performance in its technical apparel segment, which grew 34% to $407 million.
The company’s gross margin improved by 220 basis points to 55.5%, while the adjusted gross margin saw a 200 basis point increase to 55.8%. Despite an operating loss of $9 million, a stark contrast to the $8 million profit in the second quarter of 2023, Amer Sports’ adjusted operating profit rose 40% to $29 million. The net loss decreased dramatically by 98% to $4 million, translating to a diluted loss per share of $(0.01), while adjusted net income surged 129% to $25 million, or $0.05 diluted earnings per share.
Amer Sports’ CEO James Zheng expressed satisfaction with the company's performance, highlighting the strength of their portfolio and market share gains in sports and outdoor markets globally. The company's financial health is further indicated by a year-over-year inventory increase of 2%, which is below the revenue growth for the quarter, suggesting efficient inventory management.
Looking ahead, Amer Sports raised its full-year guidance for 2024, with anticipated reported revenue growth between 15% and 17%, and an operating margin towards the high-end of 10.5% to 11.0%. The company also provided guidance for the third quarter, expecting reported revenue growth of 12% to 13% and an operating margin between 11.0% and 12.0%.
These results are based on a press release statement and reflect Amer Sports’ current and preliminary estimates of market and operating conditions, which are subject to change. The company’s shares are listed on the New York Stock Exchange, and it employs over 11,400 people globally. Amer Sports generated $4.4 billion in revenue in 2023 and has operations in more than 40 countries.
In other recent news, Amer Sports Inc. reported an impressive second quarter with earnings and revenue that exceeded analyst expectations. The sports and outdoor equipment maker posted adjusted earnings per share of $0.05, beating estimates for a loss of $0.06 per share. Revenue saw a year-over-year increase of 16%, reaching $994 million, surpassing expectations.
The company's strong performance was driven by a 34% growth in its Technical Apparel segment and an 11% increase in revenue from the Outdoor Performance segment. Following these positive results, Amer Sports raised its full-year 2024 guidance, expecting an adjusted EPS of $0.40-$0.44.
In terms of future projections, the company anticipates a revenue growth of 12-13% and an adjusted EPS of $0.08-$0.10 for the third quarter. These recent developments reflect Amer Sports' ability to maintain growth and profitability in a challenging consumer environment.
InvestingPro Insights
Amer Sports Inc. (NYSE: AS) continues to demonstrate a robust financial trajectory, as evidenced by its impressive revenue growth and strong performance in the technical apparel segment. The InvestingPro data underscores this trend with a revenue increase of nearly 17% in the last twelve months as of Q1 2024, further solidifying the company's market position. With a market capitalization of $6.24 billion, Amer Sports stands as a significant player in the sports and outdoor markets.
Investors tracking Amer Sports' stock performance will note the company's significant price recovery over the past week, with a total return of 10.86%. This rebound is indicative of market confidence and aligns with the company's raised guidance for the year. Additionally, the InvestingPro Tips suggest that analysts are optimistic about the company's profitability in the near term, despite it not being profitable over the last twelve months. This optimism is further bolstered by the company's liquid assets, which exceed its short-term obligations, indicating a solid financial footing for upcoming operational needs.
While Amer Sports does not currently offer a dividend, the potential for future profitability as predicted by analysts may be a point of interest for investors seeking growth opportunities. For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available on the InvestingPro platform, which can provide deeper insights into Amer Sports' financial health and market prospects.
It's important to note that while the P/E ratio stands at -27.07, reflecting the company's current lack of profitability, the forward-looking sentiment captured by the InvestingPro Tips suggests a turnaround that may redefine the company's valuation metrics in the future. Amer Sports' next earnings date is slated for August 20, 2024, which will provide further clarity on the company's financial direction and operational success.
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