In the second quarter, Finnish multinational sporting equipment company Amer Sports reported a 16 per cent increase in revenue, reaching US $ 994 million, with an 18 per cent rise on a constant currency basis.
The company significantly reduced its net loss by 98 per cent to US $ 4 million. Adjusted net income surged 129 per cent to US $ 25 million.
“Our diverse portfolio of premium technical brands is gaining market share in sports and outdoor markets worldwide. Driven by our flagship Arc’teryx brand, we surpassed our high expectations across all key financial metrics, setting us up for another strong year in 2024,” said Amer Sports CEO James Zheng in a statement.
The company’s technical apparel segment saw a 34 per cent increase, reaching US $ 407 million, or a 38 per cent increase on a constant currency basis, with omni-channel comparable growth of 26 per cent.
Outdoor performance revenue grew by 11 per cent to US $ 304 million, or 13 per cent on a constant currency basis, while the Ball & Racquet Sports segment saw a 1 per cent increase to US $ 283 million, or 2 per cent on a constant currency basis.
The gross margin for the quarter improved by 220 basis points to 55.5 per cent, while the adjusted gross margin rose by 200 basis points to 55.8 per cent. Despite an operating loss of US $ 9 million, the adjusted operating profit climbed 40 per cent to US $ 29 million.
For the full year, Amer Sports forecasts revenue growth of 15 to 17 per cent, a gross margin of approximately 54.5 per cent, an operating margin at the high end of 10.5 to 11 per cent, and fully diluted EPS between 40 and 44 cents.
Looking ahead to the third quarter, the company expects revenue growth of 12 to 13 per cent, a gross margin of about 54 per cent and an operating margin between 11 and 12 per cent.
