Amer Sports Q2 Earnings Call Highlights

Key Points

• Amer Sports reported strong second-quarter momentum: Revenue increased 32% year over year, with double-digit growth across all segments, regions and channels. Direct-to-consumer sales rose 40% and accounted for a record 55% of group revenue.
• Profitability improved substantially, partly due to a $64.3 million tariff refund: Adjusted operating margin rose to 12.8% from 5.5%, while adjusted EPS increased to $0.22 from $0.06. Underlying gross-margin expansion excluding the refund still exceeded 300 basis points.
• The company raised its fiscal 2026 outlook: Revenue growth is now expected to be approximately 24%, with adjusted operating margin of 14.2%–14.5% and adjusted diluted EPS of $1.27–$1.30. Arc’teryx, Salomon and Wilson remain key growth drivers, supported by store expansion and new product launches.

Amer Sports NYSE: AS reported second-quarter fiscal 2026 revenue growth of 32% on a reported basis, or 30% excluding currency effects, as demand remained strong across its technical apparel, outdoor performance and ball-and-racket businesses.

Chief Executive Officer James Zheng said all segments, geographies and sales channels posted double-digit growth during the quarter ended June 30. The company’s largest growth engines—Arc’teryx, Salomon Softgoods and Wilson Tennis 360—each grew more than 20%, according to Chief Financial Officer Andrew Page.

Direct-to-consumer revenue increased 40% and represented about 55% of group revenue, a record high for the company. Wholesale revenue rose 24%. By geography, Asia-Pacific revenue climbed 60%, Greater China grew 36%, the Americas increased 26% and EMEA rose 20%.

Profitability Boosted by Tariff Refund

Amer Sports said adjusted gross margin increased 710 basis points year over year to 65.8%. The result included a one-time net tariff-refund benefit of $64.3 million, equal to 390 basis points of gross-margin benefit. Excluding that refund, the company said underlying gross margin expanded by more than 300 basis points, aided by pricing, product mix, channel mix, geographic mix, transportation costs and duties.

Adjusted operating margin rose to 12.8% from 5.5% a year earlier. Excluding the tariff refund, adjusted operating margin expanded 340 basis points. Adjusted net income reached $127 million, compared with $36 million in the prior-year quarter, while adjusted diluted earnings per share increased to $0.22 from $0.06. The tariff refunds added about $0.08 per share to quarterly adjusted EPS, Page said.

The company ended the quarter with $573 million in net cash. Inventory was up 19% from a year earlier, below the company’s 32% revenue growth rate. Operating cash flow for the first half totaled $339 million, compared with $108 million a year earlier.

Arc’teryx Continues Broad-Based Growth

Technical apparel revenue rose 32% to $674 million, led by Arc’teryx. Direct-to-consumer growth in the segment was 34%, including a 17% omnichannel increase, while wholesale revenue grew 27%. Segment adjusted operating margin expanded 470 basis points to 18.8%, including a 170-basis-point benefit from tariff refunds.

Zheng highlighted Arc’teryx’s women’s business as its fastest-growing category, saying new products and seasonal colorways represented more than 60% of women’s sales in the quarter. Footwear also posted strong double-digit growth across regions, led by existing products such as the Norvan LD 4 trail shoe and Konseal trekking shoes, as well as the recently introduced Sylan 2 trail-running shoe.

Amer Sports opened a net eight Arc’teryx stores globally in the quarter and continues to expect 30 to 35 net new stores for the full year. The company had approximately 140 Arc’teryx stores in Greater China, including owned and franchised locations, and said it sees a long-term opportunity for about 200. It also said North America could eventually support 200 locations, compared with 75 currently, while EMEA could support more than 75 locations, compared with 19 at quarter-end.

In the U.S., Arc’teryx plans to enter 15 selected Dick’s Sporting Goods House of Sport locations for fall/winter 2026 in what Page characterized as a test-and-learn initiative.

Salomon’s Footwear Momentum Accelerates

Outdoor Performance revenue increased 37% to $569 million, driven by Salomon footwear and apparel. Direct-to-consumer sales in the segment rose 52%, while wholesale revenue grew 25%. The segment’s adjusted operating margin improved 800 basis points to 14.6%, including a 270-basis-point impact from tariff refunds.

Zheng said Salomon’s sportstyle franchises, including XT-6 and XT-Whisper, continued to attract younger and more diverse consumers. The company also cited growing demand for Salomon’s performance lines, including its gravel-running products, and pointed to traction in North American and EMEA run-specialty channels.

Salomon opened 13 net new stores in Greater China during the quarter, bringing its total to 315 doors. Amer Sports continues to expect 45 net new Salomon stores in Greater China this year and sees long-term potential for 400 to 500 doors.

In North America, Salomon opened its first flagship store on Fifth Avenue in New York’s Flatiron District and said the location was off to a strong start. The company is selectively expanding with Nordstrom, JD Sports and Foot Locker. Salomon President and CEO Guillaume Meyzenq said the strategy emphasizes “quality over quantity,” with an ambition to reach a couple hundred carefully selected wholesale locations over time in key metropolitan markets.

Wilson Tennis 360 Lifts Ball and Racket Results

Ball and Racket revenue grew 24% to $390 million, led by softgoods and racket sports. Performance-racket sales increased more than 50%, helped by the Blade v10 launch, while the new Defy racket line exceeded the early results of Blade v10, Zheng said.

The segment’s adjusted operating margin rose 1,300 basis points to 17.2%, including a 970-basis-point benefit from tariff refunds. Page said the quarter benefited from product launches, related sell-in, expanded Wilson offerings at key wholesale accounts and the expansion of Wilson Tennis 360 into 450 Dick’s Sporting Goods stores from 250 previously. He cautioned that the company does not expect the segment’s 24% quarterly growth rate to continue.

Amer Sports opened 12 net new Wilson stores during the quarter, primarily in Greater China and Asia-Pacific, and continues to expect about 40 net new Wilson Tennis 360 locations in China this year.

Company Raises Full-Year Outlook

Amer Sports raised its fiscal 2026 revenue-growth outlook to approximately 24%, from a previous range of 20% to 22%. The updated forecast includes an expected 200- to 250-basis-point currency benefit at current exchange rates.

• Technical Apparel revenue growth is now expected to be 25% to 26%, up from approximately 22% to 24%.
• Outdoor Performance revenue growth is projected at 27% to 28%, up from 22% to 24%.
• Ball and Racket revenue growth is expected to be approximately 14%, up from 10% to 12%.
• Adjusted gross margin is expected to be 60.5% to 61%, including an 80-basis-point benefit from second-quarter tariff refunds.
• Adjusted operating margin guidance increased to 14.2% to 14.5%, from 13.4% to 13.7%.
• Adjusted diluted EPS is now forecast at $1.27 to $1.30, compared with prior guidance of $1.18 to $1.23.

For the third quarter, Amer Sports expects reported revenue growth of 18% to 20%, adjusted gross margin of about 59%, adjusted operating margin of 13.5% to 14%, and adjusted diluted EPS of $0.31 to $0.33.

About Amer Sports (NYSE:AS)

Amer Sports NYSE: AS is a Helsinki-based sporting goods group that designs, develops and markets performance-oriented equipment, apparel and footwear across multiple sports. The company focuses on product innovation, brand-driven marketing and global distribution to serve athletes and outdoor enthusiasts, offering goods for activities such as skiing, running, hiking, tennis, golf and diving.

Amer Sports' portfolio comprises well-known sports and outdoor brands, including Salomon (outdoor footwear and winter sports), Atomic (alpine skis and ski equipment), Arc'teryx (technical outerwear and climbing gear), Wilson (racquet and ball sports equipment) and Suunto (precision instruments and sports watches).

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