Amer Sports, Inc. (AS) is having a moment. The sportswear company's stock jumped Tuesday morning after it delivered third-quarter results that weren't just good—they were across-the-board impressive. When a company posts double-digit growth in every region and every segment while expanding margins, Wall Street tends to notice.

Beating Expectations Across the Board

The numbers tell a compelling story. Amer Sports reported adjusted earnings of 33 cents per share, comfortably above the 25-cent analyst consensus. Revenue came in at $1.756 billion, up 30% year over year and ahead of the $1.710 billion Street estimate.

What's particularly notable is the breadth of the growth. All four geographic regions delivered double-digit revenue increases, with Greater China leading the pack at a blistering 47% growth rate. And that momentum isn't slowing down—the company says the strength is continuing into the fourth quarter.

The Salomon and Arc'teryx Show

CEO James Zheng didn't mince words about what's driving the business: "All three segments performed extremely well led by exceptional Salomon footwear growth, an Arc'teryx omni-comp reacceleration, and solid growth from Wilson Tennis 360 and our Winter Sports Equipment franchises."

The segment breakdown shows where the real firepower is coming from. Technical Apparel, which includes the premium Arc'teryx brand, reaccelerated to 27% growth with strength across regions, categories, and channels. Outdoor Performance—home to Salomon—grew 36%, powered by what the company calls "continued excellent momentum" in Salomon footwear alongside strong Winter Sports Equipment sales. Even Ball & Racquet Sports, the slower-growth segment, posted a respectable 16% increase to $350 million.

Margin Expansion Tells the Real Story

Revenue growth is nice, but profitable revenue growth is better. Amer Sports delivered on that front too. Gross margin expanded 160 basis points to 56.8%, while adjusted gross margin improved 240 basis points to 57.9%.

Adjusted operating profit jumped 41% to $275 million, with the adjusted operating margin climbing 130 basis points to 15.7%. The segment margins paint an interesting picture: Technical Apparel margins dipped 100 basis points to 19.0%, but Outdoor Performance margins surged 420 basis points to 21.7%, while Ball & Racquet Sports improved 70 basis points to 7.6%.

CFO Andrew Page highlighted the strategic importance of these trends: "Salomon footwear continues to add a strong second leg of profitable growth to Arc'teryx's already exceptional trajectory, significantly elevating the financial profile and long-term value creation potential of the Amer Sports portfolio."

Translation: The company now has two high-growth, high-margin engines instead of just one. Adjusted net income attributable to equity holders more than doubled, increasing 161% to $185 million.

The balance sheet shows cash and cash equivalents of $353 million at quarter end, with net debt at $800 million. Inventories rose 28% year over year to $1.71 billion, roughly in line with the revenue growth trajectory.

Raising the Bar for 2025

Unsurprisingly, Amer Sports raised its full-year guidance. The company now expects GAAP earnings of 88 to 92 cents per share, up from the prior range of 77 to 82 cents and above the 78-cent analyst estimate. The revenue forecast also got a boost, rising to $6.375 billion to $6.427 billion from $6.22 billion to $6.27 billion, compared with the $6.361 billion consensus.

The segment-level outlook shows where management expects the momentum to continue. Technical Apparel is projected to grow 26% to 27% with a segment operating margin of about 21%. Outdoor Performance is targeting 28% to 29% revenue growth with margins of 13% to 13.5%. Ball & Racquet expects 10% to 11% growth with margins of 3% to 4%.

As of Tuesday's premarket trading, AS shares were up 10.21% to $33.90, as investors digested the results and raised outlook.