Amer Sports reported fourth‑quarter 2025 results that ended a breakout year with revenue rising 28% to $2.10 billion, driven by a 34% increase in Technical Apparel sales to $1.00 billion and a 29% rise in Outdoor Performance revenue. The company’s flagship Arc’teryx and Salomon brands were key contributors, with Salomon surpassing $2 billion in annual sales for the first time.
Adjusted earnings per share for the quarter were $0.31, beating the consensus estimate of $0.27 by $0.04 or 14.8%. The beat was largely due to disciplined cost management and a favorable product mix that shifted toward higher‑margin soft‑goods, offsetting the impact of accelerated SG&A spending in the fourth quarter. Revenue also beat the $2.00 billion estimate by $0.10 billion, reflecting strong demand in Greater China and continued growth in direct‑to‑consumer channels.
Operating margin for the quarter slipped to 12.5% from 12.8% in the same period a year earlier, a decline of 110 basis points. The compression was attributed to accelerated investments in Salomon Softgoods and other growth initiatives, which increased SG&A costs. Despite the margin dip, the full‑year adjusted operating margin expanded by 150 basis points to 12.8%, driven by higher mix and pricing power across all segments.
For 2026, Amer Sports guided revenue growth of 16%–18% and an adjusted operating margin of 13.1%–13.3%. The guidance reflects confidence in sustained demand in Greater China and the continued expansion of direct‑to‑consumer sales, while acknowledging the short‑term impact of investment spending. Management noted that the guidance for the first quarter of 2026 was lower than analyst expectations for EPS, which tempered market enthusiasm despite the strong results.
The company’s CEO, James Zheng, highlighted the quarter as a “great finish to a breakout year” and emphasized that the combination of Arc’teryx’s premium positioning and Salomon’s rapid growth underpins the company’s long‑term profitability. He also noted that the accelerated SG&A investment is aimed at supporting key growth opportunities, particularly in Salomon Softgoods, and is expected to pay off in the medium term.
The market reaction was muted, with the stock falling around 5% in pre‑market trading. Investors focused on the lower first‑quarter EPS guidance and the short‑term margin compression caused by the investment push, which outweighed the positive earnings beat and revenue growth.
Overall, Amer Sports’ Q4 2025 results demonstrate strong revenue momentum and a solid margin trajectory, while the company’s 2026 outlook signals confidence in continued growth and profitability, albeit with a short‑term investment‑driven margin dip.
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