US Sports Company Says No Structural Barriers to Sales and Profit Growth

Amer Sports Inc. shares traded higher on Tuesday after the company reported second-quarter results that beat analyst expectations and raised its full-year guidance.

Earnings Snapshot

Amer Sports reported adjusted earnings per share of 22 cents, beating the consensus estimate of 11 cents. Revenue rose 32% year-over-year to $1.633 billion, surpassing the $1.543 billion expectation.

Growth was driven by increases of over 20% in Arc'teryx, Salomon Softgoods, and Wilson Tennis 360.

Adjusted gross margin expanded 710 basis points to 65.8%, benefiting from a $64.3 million tariff refund. Adjusted operating margin increased 730 basis points to 12.8%.

Amer Sports ended the quarter with net cash of $573 million. Inventory grew 19%, well below the 32% revenue increase.

Operating cash flow for the first half of 2026 totaled $339 million.

The company continues to expect full-year capital expenditures of approximately $400 million, primarily for retail expansion and IT infrastructure.

Segment Performance

Technical apparel revenue grew 32% to $674 million, while outdoor performance revenue rose 37% to $569 million.

Direct-to-consumer sales grew 40%, accounting for a record 55% of group revenue. Asia-Pacific led geographic growth with a 60% increase.

Arc'teryx maintained strong momentum, led by women's products. The brand added 8 stores during the quarter and plans to open 30 to 35 stores globally in 2026, including 10 to 12 in Greater China. Technical apparel adjusted operating margin expanded 470 basis points to 18.8%.

Salomon continued to see strong footwear and apparel demand. The brand added 13 stores in Greater China, bringing the total to 315, and opened 7 stores in Japan, South Korea, and Australia.

In the Americas, Salomon expanded through Nordstrom, Foot Locker, and JD Sports, as well as its own retail network. Plans call for 7 to 10 new stores in 2026. Outdoor performance adjusted operating margin rose 800 basis points to 14.6%.

Wilson balls and rackets revenue grew 24% to $390 million. Performance racket sales rose over 50%, driven by the Blade V10 launch.

Wilson added 12 stores during the quarter and plans to open approximately 40 new Tennis 360 stores in China this year. Tennis 360 also expanded to 450 Dick's Sporting Goods locations. Balls and rackets adjusted operating margin surged 1300 basis points to 17.2%.

Guidance

On the earnings call, Amer Sports said there are no "structural" obstacles preventing the company from delivering higher sales and profitability when demand strengthens.

Management expressed optimism about the outlook for this year and beyond while maintaining what it called a responsible approach to guidance.

For the third quarter, Amer Sports expects earnings per share of 31 to 33 cents, below the 39-cent consensus estimate at the midpoint.

The company expects revenue of $2.072 billion to $2.107 billion, above the $2.065 billion consensus estimate at the midpoint.

Amer Sports raised its full-year 2026 GAAP earnings per share guidance to $1.27 to $1.30, up from the previous $1.18 to $1.23. The new range is above the analyst estimate of $1.20.

The company also raised its revenue guidance to approximately $8.142 billion, up from the previous $7.879 billion to $8.011 billion, exceeding the $8.023 billion expectation.

Amer Sports now expects full-year revenue growth of approximately 24%, up from the prior forecast of 20% to 22%. Guidance includes a 200 to 250 basis point currency tailwind.

Technical apparel revenue is expected to grow 25% to 26%, outdoor performance 27% to 28%, and balls and rackets approximately 14%.

Amer Sports raised its adjusted gross margin guidance to 60.5% to 61%, up from the previous 59% to 59.5%. It also raised its adjusted operating margin forecast to 14.2% to 14.5%, up from the previous 13.4% to 13.7%.

AS share performance: At Tuesday's release, Amer Sports stock was up 2.49% at $33.38.