Shares of Amer Sports (AS) climbed on Tuesday after the company posted second-quarter numbers that beat expectations and lifted its full-year forecast. The message from management? There's nothing standing in the way of even better results if demand keeps humming along.
Amer Sports Says There’s ‘Nothing Structural’ Blocking More Sales and Profit Upside
MarketDash
Amer Sports tops Q2 estimates, driven by Arc'teryx and Salomon sales growth. Stock rises as the company raises its full-year outlook.
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Earnings Snapshot
Amer Sports reported adjusted earnings of 22 cents per share, comfortably ahead of the 11-cent consensus estimate. Revenue rose 32% year over year to $1.633 billion, topping the $1.543 billion analysts were looking for.
The growth was broad-based, with gains of more than 20% across Arc'teryx, Salomon Softgoods, and Wilson Tennis 360.
Adjusted gross margin expanded a whopping 710 basis points to 65.8%, helped along by a $64.3 million tariff refund. Adjusted operating margin also surged, up 730 basis points to 12.8%.
The company ended the quarter with $573 million in net cash. Inventory increased 19%, which is notable because that's well below the 32% revenue jump, suggesting the company is managing its supply chain efficiently.
Operating cash flow for the first half of 2026 came in at $339 million. And Amer Sports still expects about $400 million in full-year capital expenditures, mostly for retail expansion and IT infrastructure.
Segment Performance
Breaking it down by segment, Technical Apparel revenue increased 32% to $674 million, while Outdoor Performance revenue climbed 37% to $569 million.
Direct-to-consumer sales jumped 40% and now account for a record 55% of group revenue. Geographically, Asia-Pacific led the charge with a 60% increase.
Arc'teryx continues to fire on all cylinders, with women's products leading the way. The brand added eight net stores during the quarter and plans to open 30 to 35 globally in 2026, including 10 to 12 in Greater China. Technical Apparel's adjusted operating margin expanded 470 basis points to 18.8%.
Salomon is also seeing strong demand for footwear and apparel. The brand added 13 stores in Greater China, bringing its total to 315, and opened seven stores across Japan, Korea, and Australia.
In the Americas, Salomon is expanding through partnerships with Nordstrom, Foot Locker, and JD Sports, as well as its own retail network. It plans seven to 10 new stores in 2026. Outdoor Performance's adjusted operating margin rose 800 basis points to 14.6%.
Wilson Ball and Racket revenue increased 24% to $390 million. Performance racket sales jumped more than 50%, helped by the Blade V10 launch.
Wilson added 12 stores during the quarter and plans about 40 new Tennis 360 stores in China this year. Tennis 360 also expanded to 450 Dick's Sporting Goods locations. Ball and Racket's adjusted operating margin surged 1,300 basis points to 17.2%.
Outlook
During the earnings call, Amer Sports said there is "nothing structural" preventing the company from delivering higher sales and profitability if demand strengthens. Management said it remains bullish on the outlook for the rest of the year and beyond, while maintaining what it described as a responsible approach to guidance.
For the third quarter, Amer Sports expects earnings of 31 cents to 33 cents per share, which is below the 39-cent consensus estimate at the midpoint. However, the company expects revenue of $2.072 billion to $2.107 billion, beating the $2.065 billion consensus estimate at the midpoint.
For the full year, Amer Sports raised its GAAP earnings outlook to $1.27 to $1.30 per share from $1.18 to $1.23. The new range is above the $1.20 analyst estimate.
The company also raised its revenue outlook to about $8.142 billion from $7.879 billion to $8.011 billion, beating the $8.023 billion estimate. That translates to full-year revenue growth of about 24%, up from the previous forecast of 20% to 22%. The outlook includes a foreign-exchange benefit of 200 to 250 basis points.
By segment, Technical Apparel revenue is expected to grow 25% to 26%, Outdoor Performance 27% to 28%, and Ball and Racket about 14%.
Amer Sports also raised its adjusted gross margin outlook to 60.5% to 61% from 59% to 59.5%, and increased its adjusted operating margin forecast to 14.2% to 14.5% from 13.4% to 13.7%.
AS Price Action: Amer Sports shares were up 2.49% at $33.38 at the time of publication on Tuesday.
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