Amer Sports Reports Fourth Quarter & Fiscal Year 2024 Financial Results, Provides 2025 Outlook

CEO James Zheng commented, “ Fourth quarter was a great finish to a historic year for Amer Sports Group, with strong performance across all segments and geographies. Led by Arc'teryx, our unique portfolio of premium technical brands continues to create white space and take market share with long growth runways still ahead. Given the strong sports and outdoor trend globally and our still underpenetrated brands, I am confident that our talented management team is well positioned to deliver strong results in 2025 and beyond. ”

FOURTH QUARTER 2024 RESULTS

For the fourth quarter of 2024, compared to the fourth quarter of 2023:

• Revenueincreased 23% to $1,636 million, or 24% on a constant currency basis¹ . Revenues by segment:
  • Technical Apparel increased 33% to $745 million, or increased 34% on a constant currency basis. This reflects an omni-comp² growth of 29%.
  • Outdoor Performance increased 13% to $594 million, or increased 14% on a constant currency basis.
  • Ball & Racquet Sports increased 22% to $296 million, or increased 23% on a constant currency basis.
• Gross marginincreased 370 basis points to 56.1%;Adjusted gross marginincreased 370 basis points to 56.4%.
• Selling, general and administrative expenses increased 13% to $732 million;Adjusted selling, general and administrative expenses increased 24% to $708 million.
• Operating profitincreased 224% to $194 million;Adjusted operating profit increased 63% to $223 million.
• Operating margin increased 730 basis points to 11.8%.Adjusted operating margin increased 330 basis points to 13.6%. Adjusted operating margin by segment:
  • Technical Apparel increased 130 basis points to 24.3%.
  • Outdoor Performance increased 190 basis points to 11.1%.
  • Ball & Racquet Sports increased 660 basis points to -3.7%.
• Net incomeincreased 117% to $15 million, or $0.03 diluted earnings per share; Adjusted net income increased 388% to $90 million, or $0.17 diluted earnings per share.

FISCAL YEAR 2024 RESULTS

For the fiscal year 2024, compared to fiscal year 2023:

• Revenueincreased 18% to $5,183 million, or 19% on a constant currency basis. Revenues by segment:
  • Technical Apparel increased 36% to $2,194 million, or increased 38% on a constant currency basis. This reflects an omni-comp² growth of 28%.
  • Outdoor Performance increased to $1,836 million, which represents 10% growth on both a reported and constant currency basis.
  • Ball & Racquet Sports revenue increased to $1,153 million, which represents 4% growth on both a reported and a constant currency basis.
• Gross marginincreased 290 basis points to 55.4%;Adjusted gross marginincreased 290 basis points to 55.7%.
• Selling, general and administrative expenses increased 21% to $2,430 million;Adjusted selling, general and administrative expenses increased 23% to $2,341 million.
• Operating profitincreased 56% to $471 million;Adjusted operating profit increased 33% to $577 million, including $24 million of government subsidies received in 2024 compared to $4 million received in 2023.
• Operating margin increased 220 basis points to 9.1%.Adjusted operating margin increased 130 basis points to 11.1%. Adjusted operating margin by segment:
  • Technical Apparel increased 150 basis points to 21.0%.
  • Outdoor Performance increased 40 basis points to 9.4%.
  • Ball & Racquet Sports decreased 70 basis points to 2.1%.
• Net income/(loss)increased 135% to $73 million, or $0.14 diluted earnings per share; Adjusted net income increased 329% to $236 million, or $0.47 diluted earnings per share.

Balance sheet . Year-over-year inventories increased 11% to $1,223 million. Net debt ³ was $591 million, and cash and cash equivalents totaled $345 million at year end.

OUTLOOK

CFO Andrew Page said, “With over 20% revenue growth, healthy margin expansion, significant free cash flow generation, and the transformation of our capital structure, the fourth quarter of 2024 marked a financial turning point in Amer Sports' journey. Although foreign currency exchange headwinds will weigh slightly on our 2025 financial results, continued strong momentum from our highest-margin Arc'teryx franchise and accelerating momentum in Salomon footwear, plus strong and stable positions from our market-leading Hardgoods franchises, gives me confidence that Amer Sports is well positioned to deliver another year of strong and profitable growth in 2025. ”

FULL-YEAR 2025

Amer Sports is providing the following guidance for the year ending December 31, 2025 (all guidance figures reference adjusted amounts):

• Reported revenue growth: 13 – 15%, which assumes a 250 basis point drag from unfavorable Fx impact at current exchange rates
• Gross margin: 56.5 – 57.0%
• Operating margin: 11.5 – 12.0%
• D&A: approximately $350 million, including approximately $180 million of ROU depreciation
• CapEx: approximately $300 million
• Net finance cost: approximately $120 million
• Effective tax rate: approximately 33%
• Fully diluted share count: approximately 560 million
• Fully diluted EPS: $0.64 – $0.69
• Technical Apparel:
  • Revenue growth of approximately 20%
  • Segment operating margin approximately 21%
• Outdoor Performance:
  • Revenue growth of low-double digits
  • Segment operating margin approximately 9.5%
• Ball & Racquet:
  • Revenue growth of low-to-mid single-digit
  • Segment operating margin 3 – 4%

FIRST QUARTER 2025

Amer Sports is providing the following guidance for the first quarter ending March 31, 2025 (all guidance figures reference adjusted amounts):

• Reported revenue growth: 14 – 16%, which assumes a 300 basis point drag from unfavorable Fx impact at current exchange rates
• Gross margin: 56.5 – 57.0%
• Operating margin: 11.0 – 11.5%
• Net finance cost: approximately $30 million
• Effective tax rate: approximately 33%
• Fully diluted share count: approximately 560 million
• Fully diluted EPS: $0.14 – 0.15

Other than with respect to revenue, Amer Sports only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking non-IFRS measures to the most directly comparable IFRS Accounting Standards measures due to the difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations without unreasonable efforts. The Company is unable to address the probable significance of the unavailable reconciling items, which could have a potentially significant impact on its future IFRS financial results. The above outlook reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results may differ materially from these forward-looking statements, including as a result of, among other things, the factors described under “Forward-Looking Statements” below and in our filings with the SEC.

CONFERENCE CALL INFORMATION

The Company's conference call to review the results for the fourth quarter and fiscal year 2024 will be webcast live today, Tuesday, February 25, 2025 at 8:00 a.m. Eastern Time and can be accessed at https://investors.amersports.com.

ABOUT AMER SPORTS

Amer Sports is a global group of iconic sports and outdoor brands, including Arc’teryx, Salomon, Wilson, Peak Performance, Atomic, and Armada. Our brands are known for their detailed craftsmanship, unwavering authenticity, and premium market positioning. As creators of exceptional apparel, footwear, and equipment, we pride ourselves on cutting-edge innovation, performance, and designs that allow elite athletes and everyday consumers to perform their best.

With over 13,400 employees globally, Amer Sports’ purpose is to elevate the world through sport. Our vision is to be the global leader in premium sports and outdoor brands. With corporate offices in Helsinki, Munich, Kraków, New York, and Shanghai, we have operations in 40+ countries and our products are sold in 100+ countries. Amer Sports, Inc. shares are listed on the New York Stock Exchange. For more information, visit www.amersports.com.

NON-IFRS MEASURES

Adjusted gross profit margin, adjusted SG&A expenses, adjusted net finance costs, adjusted income tax expense, adjusted operating profit margin, adjusted EBITDA, adjusted net income/(loss) attributable to equity holders, and adjusted diluted income/(loss) per share are financial measures that are not defined under IFRS Accounting Standards. Adjusted gross profit margin is calculated as adjusted gross profit divided by revenue. Adjusted gross profit is calculated as gross profit excluding amortization related to certain purchase price adjustments (PPA) in connection with the acquisition and delisting of Amer Sports in 2019 and restructuring expenses and expenses related to certain legal proceedings. Adjusted SG&A also excludes PPA amortization, as well as adjustments to exclude restructuring expenses, expenses related to transaction activities, expenses related to certain legal proceedings, and certain share-based payments. Adjusted net finance costs is calculated as net finance costs excluding expenses related to transaction activities, other adjustments and loss on debt extinguishment. Adjusted income tax expense is calculated as income tax expense excluding the income tax expense resulting from each adjustment excluded from Adjusted net income/(loss). Adjusted operating profit margin is calculated as adjusted operating profit divided by revenue. Adjusted operating profit is calculated as income/(loss) before tax with adjustments to exclude PPA amortization, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, certain share-based payments, interest expense, foreign currency exchange losses, net & other finance costs, loss on debt extinguishment, and interest income. EBITDA is calculated as net income/(loss) attributable to equity holders of the Company, plus net income attributable to non-controlling interests, income tax expense, interest expense, foreign currency exchange losses, net & other finance costs, loss on debt extinguishment, depreciation and amortization and minus interest income. Adjusted EBITDA is calculated as EBITDA with adjustments to exclude restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings and certain share-based payments. Adjusted net income/(loss) attributable to equity holders is calculated as net income/(loss) attributable to equity holders with adjustments to exclude PPA amortization, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, certain share-based payments, loss on debt extinguishment and related income tax expense. “Omni-comp” reflects revenue growth on a constant currency basis from retail stores that have been open for at least 13 full fiscal months and from owned e-commerce websites. Remodeled stores are excluded from the comparable sales growth calculation for 13 months if a store: (i) changes its square footage by more than 20% or (ii) is closed for more than 60 days for the refit. Stores closed 60 days or less are excluded from the comparable sales growth calculation only for the months they are closed.

The Company believes that these non IFRS measures, when taken together with its financial results presented in accordance with IFRS Accounting Standards, provide meaningful supplemental information regarding its operating performance and facilitate internal comparisons of its historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, adjusted EBITDA and adjusted net income/(loss) are helpful to investors as they are measures used by management in assessing the health of the business and evaluating operating performance, as well as for internal planning and forecasting purposes. Non-IFRS financial measures however are subject to inherent limitations, may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as an alternative to IFRS measures. The supplemental tables below provide reconciliations of each non-IFRS financial measure presented to its most directly comparable IFRS Accounting Standards financial measure.