Amer Sports (NYSE:AS) executives highlighted strong full-year and fourth-quarter results for fiscal 2025, while signaling continued momentum into early 2026 alongside stepped-up investment to support growth—particularly at Salomon.
2025 capped by broad-based growth and margin expansion
CEO James Zheng said the fourth quarter “was a great finish to a breakout year” for Amer Sports, led by Arc’teryx and Salomon, which “recently surpassed the $2 billion sales mark.” Zheng said the company delivered double-digit growth across all segments, regions, and channels in 2025.
- Revenue growth of 27% to $6.6 billion
- Adjusted operating margin expansion of 170 basis points to 12.8%
In the fourth quarter, Amer Sports posted 28% reported sales growth (26% constant currency). CFO Andrew Page said results were led by Technical Apparel and Outdoor Performance, with Ball & Racquet also contributing solid growth.
Q4 profitability: gross margin improved, operating margin pressured by investment
Page said adjusted gross margin rose 140 basis points year-over-year in the quarter to 57.8%, driven by “positive segment, regional, and channel mix shift.” However, adjusted SG&A deleveraged, rising to 45.5% of revenue from 43.3% a year earlier, primarily due to increased spending in Outdoor Performance as Salomon accelerated investment. Page also noted elevated SG&A investment in Ball & Racquet tied to Wilson softgoods growth, partly offset by leverage in Technical Apparel.
As a result, adjusted operating margin declined 110 basis points to 12.5% in Q4. Page said the decline was also influenced by lower other operating income.
Corporate expenses were $40 million in Q4, up from $12 million a year earlier, driven by higher share-based compensation. Adjusted net finance cost was $21 million, and the adjusted effective tax rate was 27%. Adjusted net income rose to $176 million from $90 million, with adjusted diluted EPS of $0.31 versus $0.17 last year.
Segment highlights: Arc’teryx scaling, Salomon investing, Wilson building softgoods and Tennis 360
Technical Apparel revenue increased 34% to $1.0 billion, led by Arc’teryx, with Page citing 37% wholesale growth and 34% DTC growth. The segment generated a 16% omni-comp and achieved 160 basis points of adjusted operating margin expansion to 25.9%, aided by SG&A leverage and reduced promotional participation (including Black Friday and Double Eleven).
Zheng called out strong momentum in Arc’teryx footwear and women’s, each growing about 40% in Q4, and described Veilance as small but growing strong double digits. Page said Arc’teryx opened 15 net new stores in Q4, and the company plans to open 25–30 net new Arc’teryx stores in 2026, with the largest number in North America and China.
Outdoor Performance revenue increased 29% to $764 million, driven by Salomon footwear and apparel, plus double-digit growth in winter sports equipment. DTC grew 55% and wholesale rose 17%. The segment posted a 28% omni-comp. Despite gross margin expansion, adjusted operating margin contracted 490 basis points to 6.2% as Salomon accelerated SG&A investments.
Management described those investments as including marketing campaigns (including XT-Whisper and Gravel), Olympics-related marketing, retail expansion—especially in China—plus talent and operational build-out, including a new Paris hub and the appointment of Salomon’s first creative director. Page said the company has seen “tangible benefits,” including brand awareness gains since 2023.
On store expansion, Page said Salomon added 33 net new shops in Greater China in Q4 (owned and partner), bringing the fleet to 286, and expects to add about 35 net stores there in 2026. In the U.S., Page said the company plans to open 7–10 new Salomon shops in 2026.
Ball & Racquet revenue increased 14% to $337 million, driven by softgoods, a return to growth in baseball, and acceleration in golf. Page said softgoods now represents about 15% of segment revenue. Segment adjusted operating margin improved 110 basis points to -2.6%, helped by less promotional activity and improved mix, partially offset by SG&A investment in softgoods. Zheng also announced Carrie Ask as the next president and CEO of the Wilson brand, effective March 1.
Balance sheet, inventory, and capital allocation
Page said Amer Sports ended 2025 with $291 million of net debt and 0.3x net leverage. Operating cash flow was $730 million in 2025, up from $425 million, driven by profit growth and working capital management. After year-end, the company announced a redemption of $80 million of its $800 million 6.75% senior secured notes at a redemption price of $103 million.
Inventories rose 33% year-over-year, which management said was slightly above sales growth as expected and reflected earlier receipt of seasonal Arc’teryx product, more goods in transit due to greater ocean shipping, FX translation, and the addition of Arc’teryx Korea inventory after an acquisition. Page said inventory growth rates are expected to normalize beginning in the second half of 2026.
Asked about capital structure and uses of cash, Page emphasized investing in growth and continuing to pay down what he called “inefficient debt,” adding that the company “like[s] our leverage position as it stands right now, being close to 0.”
Guidance: strong Q1 expected; 2026 operating margin targeted at low end due to Salomon spend
For full-year 2026, management guided for reported revenue growth of 16%–18% (including a 200-basis-point FX benefit at current rates), adjusted gross margin of about 59%, and adjusted operating margin of 13.1%–13.3%. Page said the operating margin outlook is toward the low end of the company’s long-term improvement framework due to “accelerating Salomon investment” in favor of “long-duration, profitable growth over near-term profit flow-through.”
Additional full-year 2026 items included corporate expense of about $225 million (including $50 million of costs reallocated from segments beginning in Q1 2026), net finance costs of $105–$110 million, an effective tax rate of about 28%, adjusted diluted EPS of $1.10–$1.15 (based on about 564 million fully diluted shares), D&A of about $400 million, and CapEx of about $400 million.
Segment revenue growth expectations for 2026 were:
- Technical Apparel: 18%–20%
- Outdoor Performance: 18%–20%
- Ball & Racquet: 7%–9%
For the first quarter of 2026, Amer Sports guided to reported revenue growth of 22%–24% (including a 500-basis-point FX benefit), adjusted gross margin around 59%, and adjusted operating margin of 14%–14.5%, with adjusted diluted EPS of $0.28–$0.30. Executives said trends remained strong into Q1, with Zheng noting positive consumer trends in China during the Chinese New Year, while also cautioning it was “still a bit too early” to be overly bullish on the broader China market.
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).
