Amer Sports Lifts Guidance After Robust Q3 Growth: Margin Expansion and Revenue Strength Across Regions
Amer Sports’ Double-Digit Growth Drives Guidance Boost for 2025
Amer Sports (NYSE: AS) surprised the market by raising its full-year revenue, margin, and EPS guidance after a third quarter marked by outstanding momentum across all operating segments and geographies. Revenue jumped 30% year-over-year to $1.76 billion in Q3 2025, as the company’s technical brands gained share worldwide—particularly in Greater China and direct-to-consumer channels.
Revenue Growth and Margin Expansion: Key Drivers
All four geographic regions saw double-digit revenue increases in Q3, with Greater China up 47% and Asia Pacific up 54%. Direct-to-consumer (DTC) sales accelerated by 51%, reinforcing the strategic value of Amer’s owned retail and e-commerce presence.
Operating leverage translated into a 240 basis point gain in adjusted gross margin (now 57.9%) and a 130 basis point jump in adjusted operating margin to 15.7%. Net income attributable to equity holders surged 156% to $143 million, and adjusted diluted EPS reached $0.33 for the quarter.
| Key Metrics (Q3 2025) | Result | Y/Y Change |
|---|---|---|
| Revenue | $1.76 billion | +30% |
| Gross Margin (Adjusted) | 57.9% | +240 bps |
| Operating Margin (Adjusted) | 15.7% | +130 bps |
| EPS (Diluted) | $0.25 | +127% |
| EPS (Adjusted Diluted) | $0.33 | +136% |
| Net Income | $143 million | +156% |
Segment Trends: Premium Brands Outperform
Segment analysis shows robust performance:
- Technical Apparel: Revenues up 31%, with 27% omni-comp growth. Adjusted segment margin at 19%.
- Outdoor Performance: Revenues up 36%, fueled by Salomon footwear and Winter Sports. Adjusted segment margin jumped to 21.7% (+420 bps year-on-year).
- Ball & Racquet Sports: Revenue rose 16%, segment margin improved to 7.6%.
| Segment | Q3 Revenue | Growth | Adj. Operating Margin |
|---|---|---|---|
| Technical Apparel | $683 million | +31% | 19.0% |
| Outdoor Performance | $724 million | +36% | 21.7% |
| Ball & Racquet | $350 million | +16% | 7.6% |
Guidance Lift: Higher Sales, Profitability, and EPS Expected
Reflecting sustained demand and improved execution, Amer Sports now anticipates full-year 2025 revenue growth of 23-24% (with a ~1% FX benefit). The company forecasts a gross margin near 58%, an operating margin of 12.5-12.7%, and fully diluted EPS between $0.88 and $0.92. Management reiterated confidence in hitting the high end of its long-term sales growth targets for 2026 and expects ongoing annual operating margin improvement of 30–70+ basis points.
| 2025 Outlook (Adj.) | Guidance |
|---|---|
| Revenue Growth | 23–24% |
| Gross Margin | ~58% |
| Operating Margin | 12.5–12.7% |
| Diluted EPS | $0.88–$0.92 |
| Technical Apparel Revenue Growth | 26–27% |
| Outdoor Performance Revenue Growth | 28–29% |
| Ball & Racquet Revenue Growth | 10–11% |
Regional Performance: Greater China and DTC Lead the Way
Growth was broad-based but especially pronounced in Greater China (up 47%) and the Asia Pacific region (up 54%), underlining Amer Sports’ strong foothold in key emerging markets. DTC channels expanded store counts by 39% year-over-year, while omni-comp growth was 27% in Technical Apparel and 33% in Outdoor Performance—indicating solid demand both online and in-store.
Takeaway: Focus on Brand Strength and Profitable Expansion
Amer Sports’ third-quarter performance signals both strong operational execution and healthy end-market demand, as reflected in broad-based sales growth, margin gains, and upward guidance revisions. Investors tracking premium sports and outdoor categories may see this as further evidence of resilient demand in the sector. While risks remain—from global macro shifts to supply chain variables—Amer’s upgraded guidance suggests a positive trajectory heading into 2026. As always, staying attuned to management’s commentary and segment data may provide valuable signals about the sustainability of this momentum.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.
Disclosure: This article was generated with the assistance of AI