Amer Sports: A Quarter of Growth and Profitability, Setting the Stage for 2025

Amer Sports Inc. (NYSE: AS) has reported its fourth quarter and fiscal year 2024 financial results, providing a strong finish to the year and setting the stage for 2025. The company's unique portfolio of premium technical brands, strategic initiatives, and global expansion have driven its success, with all segments and regions delivering solid top- and bottom-line results. Let's dive into the key takeaways and the outlook for 2025.

Strong Quarter and Full-Year Results

Amer Sports' third quarter of 2024 was very strong, with revenue increasing 17% on both a reported and constant currency basis. The company's brands, led by Arc'teryx, continue to create white space and take market share in sports and outdoor markets around the world. The Ball & Racquet segment accelerated to double-digit growth, while the company experienced continued strong results in Greater China and Asia Pacific, as well as accelerating growth in both North America and EMEA.



Adjusted Operating Margin Expansion

Amer Sports' adjusted operating margin increased 280 basis points to 14.4% in the third quarter of 2024. This expansion was driven by the strong performance of the company's brands and segments, with Arc'teryx's adjusted operating margin increasing 370 basis points to 20.0% and the Ball & Racquet Sports segment's adjusted operating margin increasing 600 basis points to 6.9%.

Debt Repayment and Reduced Net Finance Costs

Amer Sports announced that it has repaid all $1.2 billion of its outstanding term loans in the fourth quarter of 2024. This significant debt repayment, combined with strong cash conversion, has allowed the company to pay down more than half of its debt prior to year-end and significantly deleverage its balance sheet. As a result, Amer Sports expects fiscal year 2025 adjusted net finance costs to approximate $120 million, significantly lower than the previous guidance of $180-190 million.

2025 Outlook

Amer Sports expects full-year 2024 revenue growth to be at the high end of the previous guidance range of 16-17%, despite rising headwinds related to unfavorable foreign currency exchange rate fluctuations in the fourth quarter. The company also expects full-year 2024 adjusted operating margin to be at the high end of the previous guidance range of 10.5-11.0%. Looking forward, Amer Sports is well-positioned to deliver sustainable long-term growth and margin expansion, led by the continued global expansion of its flagship Arc'teryx brand and Salomon footwear.

In conclusion, Amer Sports' strong performance in the fourth quarter and fiscal year 2024 reflects the company's strategic initiatives and market positioning. The company's debt repayment and reduced net finance costs have significantly improved its financial health and future growth prospects. With a strong outlook for 2025, Amer Sports is well-positioned to continue its growth trajectory in the premium sports and outdoor market.