Bill McColl
2 min read
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Amer Sports exceeded profit and sales forecasts and boosted its guidance on high demand for its footwear.
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The company said it sees solid growth despite new U.S. tariffs.
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Shares of Amer Sports traded at a record high.
Shares of Amer Sports (AS) ran up to an all-time high as the athletic apparel and equipment maker reported better-than-expected results and raised its guidance on strong demand for its footwear.
The maker of Louisville Slugger baseball bats and Wilson tennis rackets posted first-quarter adjusted earnings per share of $0.27 on revenue that increased 23% year-over-year to $1.47 billion. Both topped Visible Alpha consensus estimates.
Sales at its Technical Apparel division rose 28% to $664 million. They were up 25% to $502 million at its Outdoor Performance unit, and they gained 12% to $306 million at its Ball & Racquet Sports segment.
CEO James Zheng explained that the performance was driven by the company's Arc'teryx and Salomon footwear, and that "our unique portfolio of premium technical brands continues to create white space and take market share in sports and outdoor markets around the world." Zheng also addressed what he called "macro uncertainty related to U.S. import tariff rates," saying Amer Sports is operating with discipline and flexibility, and that it's confident in its "position to manage through a variety of tariff outcomes."
CFO Andrew Page added that given the company's quarterly performance and "continued operating and financial momentum," it was increasing its outlook. Amer Sports now sees full-year EPS of $0.67 to $0.72, and revenue growing 15% to 17%, up from EPS of $0.64 to $0.69 and revenue higher by 13% to 15%. It noted the guidance assumes a 30% tariff on imports from China and 10% from the rest of the world.
Amer Sports shares soared 17% to $36.61 in recent trading after earlier touching a record $37.98. They have added more than 30% of their value this year.
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