Sometimes, a great report card isn't enough if the teacher's note about next semester sounds a little worried. That's the story for Amer Sports, Inc. (AS) on Tuesday. The company, which owns brands like Arc'teryx and Salomon, delivered a knockout fourth quarter that beat expectations. Yet, its stock took a dive. Why? Because when it peered into the future, its earnings forecast for the coming year came up a bit short of what Wall Street was hoping for.

Let's start with the good news, because there was plenty of it. For the fourth quarter, Amer Sports posted adjusted earnings of 31 cents per share, topping the analyst consensus of 28 cents. Sales surged 28% year-over-year to $2.101 billion, also beating the Street's estimate of $1.997 billion. The growth wasn't isolated; the company reported double-digit revenue increases in all four of its global regions. Greater China led the charge with a blistering 42% growth rate.

"Fourth quarter was a great finish to a breakout year for Amer Sports led by our flagship Arc'teryx brand and rising star Salomon, which surpassed the $2 billion sales mark," said CEO James Zheng. "In 2025 we delivered 27% revenue growth and more than 150 basis points of operating margin expansion, with double-digit growth across all segments, regions, and channels."

Segment Performance: Where the Growth Came From

Digging into the segments shows where the momentum was strongest. The Technical Apparel division, home to Arc'teryx, saw sales jump 34% year-over-year. The Outdoor Performance segment, which includes Salomon, grew 29%, driven by what the company called "continued excellent momentum" in Salomon footwear. Even the Ball & Racquet Sports segment, which includes Wilson, posted a solid 14% increase.

On the profitability front, the adjusted gross margin improved by 140 basis points to 57.8%. However, the adjusted operating profit margin dipped slightly by 110 basis points to 12.5%. The strength was concentrated in Technical Apparel, where margins expanded by 160 basis points to 25.9%, while Outdoor Performance margins contracted significantly by 490 basis points to 6.2%.

Leadership Change at Wilson

In a separate announcement, the company's Wilson Sporting Goods subsidiary is getting a new leader. Carrie Ask has been appointed President and CEO of Wilson, effective March 1, 2026. She will also join the Amer Sports executive committee. Andrew Page, who had been serving as Wilson's interim president and CEO while also acting as Amer Sports' CFO, will step down from the interim role and continue full-time as the group CFO.

The Outlook That Spooked the Market

Here's where the cautious tone comes in. For the full 2026 fiscal year, Amer Sports expects earnings per share in the range of $1.10 to $1.15. The midpoint of that range, $1.125, sits below the analyst consensus estimate of $1.15. For the current first quarter, the company forecasts EPS of 28 to 30 cents, which is below the consensus estimate of 32 cents.

The interesting twist is that the company's sales outlook is actually quite robust. It expects full-year 2026 sales of $7.617 billion to $7.748 billion, above the analyst estimate of $7.492 billion. First-quarter sales are projected between $1.797 billion and $1.827 billion, also ahead of the $1.755 billion consensus. So, the company is guiding for strong top-line growth but slightly softer profitability than the market anticipated.

CFO Andrew Page tried to balance the outlook by emphasizing the company's financial health. "Ending 2025 with only 0.3x net leverage and more than $700 million operating cash flow, we believe our financial foundation has never been stronger," he stated. "Looking ahead, given the continued momentum from our highest-margin Arc'teryx franchise, accelerating Salomon footwear growth, plus the solid foundation of our equipment franchises, we are confident in our ability to deliver another strong financial performance in 2026."

Despite that confidence, the market focused on the earnings guidance miss. Amer Sports shares were down 4.42% at $38.70 at the time of publication on Tuesday, according to market data. It's a classic case of a company delivering a strong past performance but offering a future forecast that, while still showing growth, doesn't quite meet the high bar set by optimistic investors.